2012 (10) TMI 837 - AT - Service Tax

Appellant Exempt from Service Tax for Visa Facilitation & Customer Care Services

The Tribunal held that the appellant was not liable to pay service tax under the category of business auxiliary service for activities related to visa ... Business Auxiliary Services - appellants engaged in the activities of visa facilitation and providing customer care services to the Diplomatic Mission Embassies/Consulates and the Visa applicants - Revenue contended the same to fall under the category of business auxiliary service - Held that:- Since issue involved is being clarified by the Circular No. 137/6/2011-ST dated 20/04/2011, therefore requirement of pre-deposit of the impugned demands is waived. On perusal of the said Circular, it is found that appellants are providing exactly the same services, which are discussed in para 3 of the said circular and as clarified by the CBE&C the activity undertaken by the appellants are not taxable under Section 65 (105) of the Finance Act, 1994 - Decided in favor of assessee Issues:Whether the appellant is liable to pay service tax under the category of business auxiliary service for the activities related to visa facilitation and customer care services.Analysis:The appellant appealed against the demands confirmed by the impugned orders and sought a stay. The issue involved was whether the appellant was liable to pay service tax under the category of business auxiliary service for their activities related to visa facilitation and customer care services. The department contended that the appellant's activities, including filling visa application forms, collecting visa fees, providing lounge facilities, and charging for food and beverages for visa seekers, fell under the taxable service category. Three show-cause notices were issued for the period from July 2003 to March 2010, and demands were confirmed in the impugned order, along with interest and penalties under the Finance Act, 1994.Upon hearing both sides, the Tribunal referred to Circular No. 137/6/2011-ST dated 20/04/2011, which clarified that certain services provided by visa facilitators, such as assisting individuals to obtain visas, did not fall under taxable services. The appellant's services were found to align with those discussed in the circular, leading to the conclusion that the activities undertaken by the appellant were not taxable under Section 65(105) of the Finance Act, 1994. The Tribunal also noted that for the subsequent period of 2010-11, the Joint Commissioner had already dropped the show-cause notice demanding service tax on similar activities based on the circular.In light of the observations and the circular, the requirement of pre-deposit of impugned demands was waived, and the appeal was taken up for disposal. The Tribunal held that the appellant was not liable to pay service tax on the activities in question. Consequently, the impugned order was set aside, and the appeal was allowed with any consequential relief deemed appropriate.