Service tax exemption claims on commission-based loan sourcing work required fresh examination, with the matter remanded for de novo adjudication.

A dispute over service tax on commissions earned as a direct sales or sourcing agent for arranging vehicle loan facilities under Business Auxiliary Service turned on whether the exemption notifications and supporting case law cited by the appellant had been properly examined. The Tribunal noted that the lower appellate authority had not considered those exemption claims or the cited precedents. The matter was therefore sent back for fresh consideration by the original authority on the existing pleadings and materials, with de novo adjudication directed.

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Issues: Whether the matter should be remanded for fresh consideration of the appellant's claim to exemption and reliance on case law in relation to the service tax demand under Business Auxiliary Service.

Analysis: The appellant's activity was described as that of a direct sales agent or sourcing agent arranging vehicle loan facilities for customers of a bank and receiving commission. The Tribunal noted that the lower appellate authority had not examined the applicability of the exemption notifications relied upon by the appellant or the case law cited in support of its stand. In these circumstances, the matter required fresh examination by the original authority on the pleadings and materials already placed before the Tribunal.

Conclusion: The matter was remanded for de novo adjudication, and the appeal was allowed by way of remand.

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