https://www.taxtmi.com/caselaws?id=461142 CESTAT Allahabad allowed the appeal challenging service tax demand on advertising services. The tribunal found the demand computation flawed as it was based on presumed 15% commission rather than actual sales margin of 6.67% from balance sheets. The services should have been classified under advertising agency services, not business auxiliary services, with tax payable only on net surplus income. The appellant was correctly paying service tax on actual income earned rather than notional commission value. Post-01.07.2012, such services became exempt under Section 66D of Finance Act 1994. The tribunal set aside the entire demand including interest and penalties due to incorrect quantification and classification. en-us Tue, 12 Mar 2024 00:00:00 +0530 Mon, 17 Mar 2025 10:46:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=461142 CESTAT Allahabad allowed the appeal challenging service tax demand on advertising services. The tribunal found the demand computation flawed as it was based on presumed 15% commission rather than actual sales margin of 6.67% from balance sheets. The services should have been classified under advertising agency services, not business auxiliary services, with tax payable only on net surplus income. The appellant was correctly paying service tax on actual income earned rather than notional commission value. Post-01.07.2012, such services became exempt under Section 66D of Finance Act 1994. The tribunal set aside the entire demand including interest and penalties due to incorrect quantification and classification. Case-Laws Service Tax Tue, 12 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=461142