2014 (9) TMI 857

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.... JUDGEMENT Per: B S V Murthy: Service tax of Rs. 54,55,487/- has been demanded under reverse charge mechanism from the appellant on the ground that they have incurred expenditure for advertising and publicity which amounted to 'sponsorship service'. The case of the Revenue is that appellant has been giving donations and sponsoring events and in all such cases, the condition is that ....

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.... but paid as donations. As regards publication of logo or name, it was submitted that in some cases where donations are made for construction of buildings or construction of water tanks, etc., 'donated by the bank name' is displayed. According to the appellant, it cannot be considered as sponsorship and is not covered by the service. 2. Learned AR takes us through the definition of &#39....

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....o such donors" 3.1 The claim of the Revenue is that the appellant's activities are covered by the last portion of the definition where service provided is under obligation to provide something in return. It is the claim of the Revenue that appellant has put a condition that either their name should be displayed or the person providing the service should get more business. The important ques....

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.... bringing their name or products or services in public image to public attention by associating with a popular or successful event. This is an alternate form of advertisement. Consideration is normally paid in return for naming of the event after the sponsor or displaying the sponsoring company's logo or trading name or giving the sponsor exclusive or priority booking rights. Service tax is le....