2011 (8) TMI 199

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....heir customers are interested in procuring loans for the vehicles purchased from the appellants, the appellants facilitated their customers by procuring loans from various banks like ICICI Bank and HDFC Bank. For getting loan facility from the banks for their customers, they received certain amount of commission from the banks.   3. The Revenue entertained a view that such services are in the nature of promotion and marketing services for the banks and fall under the category of business auxiliary services . As such, the commission received by them is liable to be taxed.   4. Accordingly, the proceedings were initiated against them which culminated into an order passed by the original adjudicating authority and confirmed by the ....

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....aring the learned SDR on the above issue, we find that there is no dispute about legal issue. If the commission is provided to the appellants, though physically, a part of the same is directly delivered to the customers, at the behest of the appellants, it is the total amount received by them which would form the value of the services rendered by them. We find that the said issue was also the subject matter of the Tribunal s decision, in which it was held that it is the total commission earned by the assessee, which would be liable to service tax, irrespective of the fact that a part of the same is either handed over by the assessee to its customers or the same is directly paid by the banks to the customers.   8. Learned Advocate appe....

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.... to service tax in its entirety. However, if the separate commission is given to the assessee as also to the customers by the banks, the commission given to the customers cannot be said to be the part of the value of the services being rendered by the assessee.   11. The above factual position is not very clear, inasmuch as the show cause notice has relied upon the certificate from the banks giving quantum of total payout without indicating as to whether the entire payout was received by the appellants or only a part was received by the appellants or other part was received by the customers of the appellants. The above position would become clear from the TDS certificate issued by the bank, which would admittedly relate to the quantum....