2014 (1) TMI 667

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....common, they are taken up together for consideration and disposal. 2. The appellant, M/s. Raheja Universal Pvt. Ltd., shared common expenditure such as, staff expenses, space used, computer software and maintenance charges, electricity charges, repairs and maintenance expenses, printing and stationery and vehicle expenses with their group companies during the period 2003-04 to 2005-06. On the said expenses, which was recovered from their group companies, the department was of the view that service tax is payable under the category of 'Business Auxiliary Service. The service tax demand in this regard amounted to Rs. 45,04,294/-. The appellant is also engaged in construction of residential flats on which they discharged service tax liability....

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....ty w.e.f. 01/05/2006 under the category of 'Business Support Service' and the department has accepted the same. The amounts were collected from their group companies towards share of their common expenses incurred such as staff expenses, space used, software maintenance charges, electricity charges, repairs and maintenance expenses, printing and stationary and vehicle expenses. The appellant has not rendered any service for the marketing or promotion of the service rendered by the group companies nor the activity come under the category of transaction processing as held by the adjudicating authority and, therefore, question of payment of service tax under 'Business Auxiliary Service' does not arise at all. 3.1 As regards demand under 'Mana....

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....e he prays for grant of stay. 4. The learned Additional Commissioner (AR) appearing for the Revenue reiterates the findings of the adjudicating authority. 5. We have carefully considered the rival submissions. 5.1 As regards the demand for service tax on commonly shares expenses under the category of 'Business Auxiliary Service', we find that the transaction does not involve any of the categories mentioned in BAS. The notice demands tax under clause (ii) of the BAS which relates to promotion or marketing of service provided by the client and under clause (vi) which deals with any incidental or ancillary support service such as billing, collection or recovery of cheques, maintenance of accounts and remittance, inventory management, evalua....