Marketing services provided to a Bank using their publicity material cannot be regarded as service provided under brand name/trade name of Bank - Benefit of small scale service provider's exemption available

(New Delhi CESTAT) - CCE, Chandigarh vs. A.S. Financial  2015] 60 taxmann.com 203

Marketing services provided to a Bank using their publicity material cannot be regarded as service provided under brand name/trade name of Bank - Benefit of small scale service provider's exemption available.

FACTS:

Assessee in terms of agreement with ICICI Bank was providing service of promotion and marketing. Threshold exemption was claimed for commission

received for said services. Department denied exemption on the ground that assessee was acting as the franchisee of ICICI and was providing services under their brand/trademark andhence was not eligible for threshold exemption under notification no. 6/2005-ST.

HELD:

The Tribunal held that just promoting products of the Bank by using their publicity materials or displaying banners showing "franchise of ICICI" would not mean that assessee was providing business auxiliary services to the Bank, under the brand of ICICI. Services provided by the assessee are business auxiliary services and the services provided by the Bank are banking and financial services and assessee is not the franchisee of the Bank as it is not providing financial services by using business model or the trade name of the Bank. It is not the case where assessee was paying some amount to the Bank for using its brand name or trade name. On the contrary, it is the Bank which is paying to the assessee for providing the marketing services. Hence, benefit of threshold exemption is available.