Banking operations and commission-based services were held outside business auxiliary services, with prior Tribunal rulings followed.

Activities such as collecting phone bills, handling remittances, issuing demand drafts, collecting monthly bills and assisting other banks were treated as part of the assessee's banking operations and within its registered line of business. Receipt of commission did not, by itself, justify reclassification of those services as business auxiliary services. Earlier Tribunal orders in the assessee's own case were followed, and the department's objection that those orders were not accepted was not a valid basis to sustain the demand. The services were held not taxable as business auxiliary services, the assessee's appeals were allowed, and the revenue's appeals were rejected.

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Issues: Whether the assessee's activities of collecting phone bills, handling remittances, issuing demand drafts, collecting monthly bills and assisting other banks were classifiable as business auxiliary services or fell within banking and financial services.

Analysis: The activities were undertaken in the course of the assessee's banking operations and were part of its registered line of business. Merely because remuneration was received in the form of commission did not justify reclassifying those services as business auxiliary services. The earlier Tribunal orders on the same issue for the assessee's own case were followed, and the departmental objection that those orders were not accepted was held to be no ground for confirming the demand.

Conclusion: The services were not taxable as business auxiliary services. The assessee's appeals were allowed and the revenue's appeals were rejected.

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