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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 and hence 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.
