TaxTMI 
TaxTMI 
2011 (11) TMI 408
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....fly as under : Name of the Bank/Company Scope of the serviced provided by SCML as per the agreement entered with the Bank/Company Citi Bank (i) To facilitate certain activities of the Bank and representing that it has requisite infrastructure, staff and expertise to carry out the services in an efficient manner; (ii) To act as a facilitator for the prospective customers; (iii) To scrutinize the application, interview the borrowers, find out the authenticity/veracity of data/information; (iv) To take due and proper care and custody of the post-dated cheques/documents and other materials collected from customers. HDFC Bank To market various types of services and all overdrafts products the bank may launch from time to time. ICICI Bank To arrange for finance and granting of loans, to provide certain services relating to the granting of loans, for and on behalf of the ICICI Bank. To forward the duly completed loan application and initial documents to ICICI bank. To collect from each customer service charges, security charges and other amounts. Forward Credit Kotak Mahindra Ltd. To execute the Ford India Ltd. dealer's sale and s....
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.... 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) Procurement of goods of services, which are inputs for the client; or (v) Production of goods on behalf of the client; or (vi) Provision of service on behalf of the client; or (vii) A service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi) such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, public relation services, management or supervision and includes services as a commission agent but does not include any information technology services and any activity that amounts to manufacture within the meaning of clause (f) of Section 2 of the Central Excise Act, 1944." 6. After the changes brought in the definition as stated above, the appellants started paying service tax on commission received by them from banks....
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.... to the department. So Show Cause Notice issued on 20-4-2006 by invoking extended period of time is not maintainable. (vii) Board's clarification issued vide Circular No. 87/05/2006-S.T., dated 6-11-2006 is oppressive in nature and such circular cannot be given retrospective effect as held by the Apex Court in the case of Suchitra Components Ltd. v. C.C.E. - 2007 (208) E.L.T. 321 (S.C.) = 2008 (11) S.T.R. 430 (S.C.). (viii) The penalties imposed are not warranted because there was no fraud, suppression or misdeclaration by the Appellants. At any rate because of the confusion in the scope of the entry they are entitled to the benefit of Section 80 of the Finance Act, 1994 for waiving penalty. 8. He also submits that Commissioner (Appeals) did not appreciate the following grounds properly : (i) The demand was time barred; (ii) In identical situation the Tribunal had dropped demand in many cases like that of Bridgestone Financial Services v. CST - 2007 (8) S.T.R. 505 (Tri.) for the reason that extended period of five years cannot be invoked for demanding tax in this type of situation. 9. The ld. SDR points makes the follo....
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....n para 9.14 of the adjudication order. 10. The ld. SDR relies on the following decisions to buttress his argument that the impugned services would get classified under Business Auxiliary Services : (i) Cross Road Auto Pvt. Ltd. v. C.C.E. - 2009 (15) S.T.R. 181 (Tri.- Del.) (ii) C.C.E. v. Sanfin - 2009 (13) S.T.R. 551 (Tri.-Kol.) (iii) C.C.E. v. Vinayak Leasing and Finance - 2009 (13) S.T.R. 35 (Tri.-Del.); (iv) C.C.E. v. Chambal Motors (P) Ltd. - 2008 (9) S.T.R. 275 (Tri.- Del.) (v) Malpani Finance v. C.C.E. - 2008 (10) S.T.R. 300 (Tri.-Del.); (vi) Roshan Motors Ltd. v. C.C.E. - 2009 (13) S.T.R. 667 (Tri.-Del.). 11. The entry prior to 10-9-2004 covered "promotion or marketing of services provided by client". In this case the Banks/NBFCs were the client of the Appellant and the Appellant was promoting the services namely sanctioning of car-loans to the loan seekers. This part of the definition has remained the same prior to 10-9-2004 and thereafter. Clause (iv) of the definition of this service amplifying the scope of the primary entries to co....