Tribunal Rules on Service Tax for Advertising Agency's Revenue-Sharing Model; Novation Agreement Due to Business Frustration.

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....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.....