TaxTMI 
TaxTMI 
2012 (8) TMI 49
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.... case are that the assessee is holder of service tax registration and they did not pay Service Tax amounting to Rs.4237.49 Lakhs and Education Cess amounting to Rs.51.45 Lakhs on taxable service viz. Banking & Other Financial Services and Business Auxiliary Services during the period from 01.04.2002 to 31.03.2007 and 01.07.2003 to 31.03.2007 respectively. After enquiry and verification of documents, a Show Cause cum Demand Notice was issued against them. Ld.Commissioner confirmed the demand of Rs.4,64,49,133/-(Rupees Four Crore Sixty Four Lakh Forty Nine Thousand One Hundred Thirty Three only) and imposed an equal amount of penalty of Rs.5,000/-(Rupees Five Thousand only) (which is not subject matter of this case) against M/s.Magma Leasing ....
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....ention is that the hire purchase agreement entered by the assessee with various clients is not liable to Service Tax since the agreement in nomenclature is purchase agreement but in effect it is in the agreement of Hire Purchase Finance Agreement (HPF) and the Hire Purchase Agreements are for financing motor vehicles. The contention is that the applicant is providing financial services to their buyers. The clause pertaining to registration in the hire purchase agreement stipulates that registration of the vehicle will be in the name of the buyer but the ownership vests on M/s.Magma till the last installment is paid to M/s.Magma. The contention of the assessee is that the above clause is only a deterrent considering the factual position whic....
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.... as demand of Service Tax on Business Auxiliary Service (BAS) is concerned the Show Cause Notice is vague and no specific sub-heading has been indicated. The applicant also made an alternate plea that at the best the service can be covered under Business Support Service w.e.f. 01.05.2006. The contention is that since the constitutional validity of the levy was challenged by equivalent leasing the extended period is not invokable. 3.1 Ld.Consultant appearing for the department contended that only Financial lease (FL) & Hire Purchase (HP) taxable and Operative Lease (OL) not taxable only name changed from FL & hp. From 01.06.07 an explanation clause differentiates FL from OL but before that no statutory difference existed. The applicant in....
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....RBI, Memorandum of Association & Annual Reports. They have cited Tribunal order 2007(7) STR 423 (Tri-Mumbai) in the case of Bajaj Auto Finance Vs. CCE, Pune. In that case the Tribunal accepted the contention of assessee that title to goods vests with the company in case of hire purchase and with the purchaser in respect of hire purchase finance. Agreements in this case need to be individually examined which have not been explained by the assessee nor examined by the Commissioner. Total income under Finance Lease , Hire Purchase, Finance Income, Management Fes, penal interest, termination charges & securitization is shown as Rs.48.08 Crores, for 2002-03, but taxable value is given and accepted as Rs.37.14 Crores; for 2003-04 total income is ....
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....ct to a hiring agreement under which the lender is given the licence to seize the goods. In the agreement between lessor and lessee, produced as evidence, nowhere the lessee is shown as owner of the equipment nor is there any clause like seizure of equipment for default in payment of EMI. In respect of vehicles, though the lessor is owner, for owner of the equipment nor is there any clause like seizure of equipment for default in payment of EMI. In respect of vehicles, though the lessor is owner, for registration a kind of deemed ownership is shown. 3.5 From total income of Magma consisting of the Components designated as finance lease , finance income , management fees , penal interest and termination charges , the amounts representing ....