2013 (2) TMI 102

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....ead "Business Auxiliary Service" (BAS). The appellant got themselves registered under this head and paid service tax from 10.9.2004 and the amount so paid stands appropriated towards the above demand. The case of the appellant, which is based on the terms and conditions of their Agreements with ICCI Bank Ltd. and HDFC Bank Ltd., is that they were only providing a service on behalf of the banks (clients) to the latter's customers and hence the activity was not taxable prior to 10.9.2004, the date on which "Provision of Service on behalf of the client" was enacted as a part of the definition of BAS under Section 65 (19) of the Act. Per contra, the case of the Revenue is that the appellant was promoting/marketing the services of the Banks and ....

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.... the penalties on the ground that, in the facts and circumstances of this case, the appellant is entitled to the benefit of Section 80 of the Act. 3. We have perused the records and considered the submissions. The terms and conditions of the relevant Agreements show that the appellant was, in fact, using their infrastructure, staff and expertise to market products of the Banks. In both the Agreements, the appellant was referred to as "Direct Sales Association/Agent". After a study of the functions assigned to the appellant under the Agreements, we have found this name of the appellant to be befitting in the sense that the appellant was, in fact, selling products of the Bank. The products of the Banks were nothing but "Banking services". Th....