The Appellate Tribunal examined the applicability of service tax...

The Appellate Tribunal examined the applicability of service tax on transactions by an Advertising Agency involving the sale of time or space on electronic billboards to clients under a revenue-sharing arrangement. The Tribunal found the agreement between the parties to be a Joint Venture/Partnership for mutual benefit. Due to a Public Interest Litigation and subsequent court order, the business was frustrated, leading to the impossibility of performance. The parties agreed to novate the agreement due to financial difficulties, converting a deposit to equity. The Tribunal set aside the Review Order and upheld the Order-in-Original, allowing the appeal with consequential benefits.

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