2010 (6) TMI 179

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....ious penalties imposed on them. The impugned demand was raised in a show-cause notice dated 29.9.05 which invoked the extended period of limitation on the alleged ground of suppression of facts by the appellant. The demand is under the head 'Business Auxiliary Service' falling under Section 65(19) of the Finance Act, 1994. During the period 'Business Auxiliary Service' stood defined as under: "Business auxiliary service' means any service in relation to:- (i) production or marketing or sale of goods produced or provided or belonging to the client; or (ii) promotion or marketing of service provided by the client; or (iii) any customer care service provided on behalf of the client; or (iv) any incidental or auxiliary support....

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....ncome Tax department, the department would allot PAN to the applicants/assessees from the NCC, whereupon the appellant would print PAN cards having hologram and other security features and colour photograph of applicants as per design approved by the department. The applicant shall subsequently dispatch the printed PAN card with a forwarding letter to the PAN applicant through courier or other suitable mode. Under the above contract, it was up to the appellant to arrange facilities for establishing independent separate PAN service centers and for transferring the PAN applications to data entry/allotment centers, set up necessary data communication links between the centers, server and the NCC and the Income Tax department. All expenditure i....

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....ar no. 89/7/ST dated 18.12.2006, as also a few decisions of this Tribunal such as Commissioner vs. CMC Ltd. 2007 (7) STR 702 (Tri-Bang). In the context of his submission that the job undertaken by the appellant was not 'incidental' or 'auxiliary' to any of the preceding services under section 65(19) of the Act, the learned counsel has claimed support from the decision in Gandhi and Gandhi Chartered Accountants vs. Commissioner 2010 (17) STR 25 (Tri-Bang). 5. He has also pleaded time-bar against the demand of service tax. It is submitted that nothing was suppressed before the department and that, after the amendment (10.09.2004) of section 65(19), the appellant is paying service tax on the same service. The issue is one involving interpre....

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.... Commissioner (supra). In that case, the relevant clause "any incidental or auxiliary support service such as computerized data processing etc." was held to be independent of the services named prior thereto under section 65(19). The words "incidental" and "auxiliary" were interpreted by the Bench. The circular of the Board was also considered. The bench ultimately held that the services rendered, namely, the outsourced work of spot billing by the assessee would come within the ambit of business support services for the purpose of levy of service tax only with effect from 2006. In the present case, the definition of "business auxiliary services" under section 65(19) was amended with effect from 10.09.2004, whereafter "incidental and auxilia....