2018 (5) TMI 406 - AT - Service Tax

Chitfund business services deemed non-taxable by Tribunal; remanded for fresh decision.

The Tribunal found that the appellant's services in the Chitfund business were not taxable based on relevant judgments. The matter was remanded to the ... Valuation - Banking and other Financial Service - Held that: - the Commissioner has not dealt with the any of the judgments cited above and the position of the taxability decided - the matter should go back to the adjudicating authority to decide the show-cause notices afresh - appeal allowed by way of remand. Issues involved:Valuation of services provided by the appellant in the Chitfund business under the category of Banking and other Financial Service.Analysis:The appellants, engaged in the Chitfund business, were demanded Service Tax on various receipts excluding forgone commission. The only issue was the valuation of services provided. The appellant had discharged Service Tax on forgone commission but not on other receipts. The appellant argued that the service itself is not taxable, citing relevant judgments. The Revenue reiterated the findings of the impugned order.Upon considering the submissions, the Tribunal found that the appellant's services were prima facie not taxable based on the cited judgments. However, the Commissioner had not addressed the judgments or the taxability position in the appellant's subsequent case. Therefore, the matter was remanded to the adjudicating authority for a fresh decision in light of the judgments cited by the appellant.The impugned order was set aside, and the appeals were allowed for remand to the adjudicating authority for a fresh determination based on the legal principles discussed in the cited judgments.