TaxTMI 
TaxTMI 
2011 (11) TMI 409
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....aken by the customers, the appellants got commission from the banks or NBFCs. The issue in this appeal is whether service tax is to be paid on such commission categorizing the activity of the Appellants as "business auxiliary service". 2. The activities carried out by the Appellants are given in para 3.1 to para 3.3 of the Show Cause Notice as under : "3.1 Dealers/agents are engaged in display of promotional material for advertising of loans by the banks; 3.2 The dealers/agents are engaged in doing first level of scrutiny of the prospective customers i.e. identifying such buyers who could then be pursued for marketing of loan. 3.3 They also act as an intermediary between the bank and the customer for canvassi....
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.... 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 manufact....
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....of, (a) Bridgestone Financial Services v. CST - 2007 (8) S.T.R. 505 (b) Chamundeswari Associates v. C.C.E. - 2008 (12) S.T.R. 623. (c) Car World Autoline v. C.C.E. - 2007 (83) RLT 846 = 2008 (9) S.T.R. 246 (Tri.). (d) Prabhat Financial Services v. C.C.E. - 2008 (9) S.T.R. 272. 8. 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 thereaft....
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.... services, which are inputs for the client; (b) production of goods on behalf of the client; (c) provision of service on behalf of the client; or (d) a service incidental or auxiliary to any activity specified in (a) to (c) above, from the whole of the service tax leviable thereon under Section 66 of the said Finance Act : Provided that nothing in this notification shall apply to,- (i) a factory registered under or governed by the Factories Act, 1948 (63 of 1948); (ii) a company established by or under the Companies Act, 1956 (1 of 1956); (iii) a partnership firm, whether reg....
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....at it is necessary in the public interest so to do, hereby exempts that portion of the value of following taxable services, namely- (a) services provided to a customer, by a commissioning and installation agency in relation to erection; (b) services provided to any person, by a sub-broker in connection with the sale and purchase of securities listed on a recognised stock exchange; (c) services provided to any person by a multisystem operator in relation to cable services; (d) services provided to a client by a commercial concern in relation to the following business auxiliary services namely,- (i) proc....
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....viable thereon under Section 66 of the said Act, which is received by the service provider prior to the 10th day of September, 2004." 12. This notification has two peculiarities as compared to usual exemption notifications. Firstly this notification is for value of taxable services rather than the service itself. Secondly the notification provides exemption for value of services received prior to 10-9-2004. 13. The appellants are contesting that they are eligible for exemption as per clause (e) of the Notification. They submit that though their service is being classified by revenue as "Business Auxiliary Service" their service is in relation to banking and other financial service and they should be given the benefit of this....