Appellant not liable for service tax under Business Auxiliary Service category. Appeal allowed, impugned order set aside.

The Tribunal held that the appellant was not liable to pay service tax under the Business Auxiliary Service category as the main service provider had already paid service tax on the full amount received, including the commission paid to the appellant. Therefore, the appellant was not subject to further liability for service tax. The appeal was allowed, and the impugned order was set aside, along with the disposal of the miscellaneous application.

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Issues involved: Liability to pay service tax under Business Auxiliary Service as per Section 65(19) of the Finance Act, 1994.

Analysis:

1. Issue of Liability to Pay Service Tax: The main issue in this appeal was whether the appellant was liable to pay service tax under the Business Auxiliary Service category as defined in Section 65(19) of the Finance Act, 1994. The appellant had received commission from M/s E-BIZ.COM Pvt. Ltd., which was a registered service provider under the category of Online Information and data processing and retrieval. The revenue contended that the appellant was liable to pay service tax based on the commission received. A show cause notice was issued demanding duty payment for the period 2005-06 and 2006-07.

2. Judgment Analysis: The Tribunal analyzed the facts and referred to a precedent decision involving M/s BSNL where it was held that if the service provider had already paid service tax on the full amount received, then no further liability of service tax arose on the agents or associates receiving commission. In the present case, M/s E-BIZ.COM Pvt. Ltd. had paid service tax on the gross receipt, including the commission paid to the appellant. Therefore, the Tribunal held that the appellant was not liable to pay service tax as the service tax had already been paid by the main service provider. The appeal was allowed, and the impugned order was set aside, disposing of the miscellaneous application as well.

This detailed analysis of the judgment provides a clear understanding of the issues involved and the Tribunal's decision based on the interpretation of relevant legal provisions and precedents.

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