2011 (6) TMI 365

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....ICICI Bank and on such loan being sanctioned to the appellant, ICICI bank used to give them an amount as commission. The period involved in this case is from 1.7.2003 to 30.9.2004. Show cause notice was issued to the appellants for the entire period invoking extended period of limitation for demand of an amount of Rs.1,36,665/- plus Rs.297/- as Education Cess and for imposition of penalties and interest on such Service Tax demand, under the head 'Business Auxiliary Services'. The appellant contested the matter before the Adjudicating Authority. Adjudicating Authority confirmed the demand under the category of 'Business Auxiliary Services' and imposed equivalent amount of penalty under Section 78 of the Finance Act, 1994 and did not impose a....

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....d would submit that the appellants were rendering the services which would get covered under 'Business Auxiliary Services'. It is his submission that the services rendered by the appellant were squarely covered by the decision of the Single Member Bench in the case of Pebco Motor Ltd. Vs. CCE, Jamshedpur - 2008 (10) STR 463 (Tri.-Kolkata). It is his submission that the services rendered by the appellant are taxable and having not paid the tax, the lower authorities have correctly invoked the extended period. It is his submission that the provisions of Notification No.25/2004 are not applicable to the case in hand. 5. We have considered the submissions made at length by both sides and perused the records. It is undisputed that the appellant....

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.... under 'Business Auxiliary Services'. We do not find any error in such conclusion. 6.2 Having held so, we would also like to record that the appellant could have had a bonafide belief that the services rendered by him would not fall under any of the services of 'Business Auxiliary Services' as they were not providing any other services to their clients. Their bonafide belief cannot be doubted, as during the relevant period, as the services falling under the Notification No.25/2004-ST dated 10.9.2004, which was later on interpreted by the Hon'ble High Court in a manner other than the thought as was entertained by the appellant. In our considered opinion, the assessee's bonafide belief cannot be doubted and hence, the show cause notice which....