TaxTMI 
TaxTMI 
2014 (2) TMI 98
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....he order of reference was recorded) may be noticed. Revenue proceeded against the appellant/assessee by issuing a show cause notice dated 23.10.2008 proposing to levy service tax besides interest and penalties as indicated therein for having provided Business Auxiliary Service (BAS) [defined in Section 65(19) of the Finance Act, 1994 (the Act), read with Section 65 (105) (zzb)], during 01.07.2003 to 31.03.2008, by way of providing the business of banks/financial institutions, namely of providing loans to customers including by providing a space (to the banks/financial institutions) in the premises of the assessee. The assessee contested. After a due process, the proceedings culminated in the adjudication order dated 31.07.2009 which assessed a service tax liability of Rs.5,86,848/- besides interest and penalties as specified therein including penalty of an amount equivalent to the tax assessed, under Section 78 of the Act. The adjudication order also appropriated Rs.91,298/-, remitted by the assessee during the course of proceedings. 4. Aggrieved, the assessee unsuccessfully preferred appeal which was rejected by the Commissioner (Appeals), Aurangabad by order dated 02.12.2009. ....
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....between the parties, oral or written) undertakes to provide/offer a raft of services, some or all of which may be taxable services; including BAS. Mere provision of table space would provide no valuable input which permits identification of the character of the transaction for classification into one or the other or not any, taxable service. 9. In every case, where proceedings are initiated by Revenue against automobile dealers on a premise that there is an extent contractual relationship between the dealer and a bank/financial institution, whether involving a table space or otherwise, the primary analysis must involve a consideration of the relevant transactional document /agreement /MOU, between the parties, to identify the essential nature of the transaction. On such primary analysis of the transactional documents, the distillate of the transaction as ascertained by the adjudicating authority must be considered against the appropriate taxable service, in terms of its definition. After this process, the adjudicating authority if reasonably satisfied that the transaction falls within a specific taxable services, may proceed to assessment of tax, interest and penalties, as appro....
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....the assessee's efforts in having provided any such service to the financial institutions. It was held that mere presence of the financial institutions in the assessee's premises and receiving a consideration for lease of table space, would not amount to BAS. This judgment is therefore not any authority for a principle that transactions between an automobile dealer and bank/financial institutions, involving presence of such financial institutions in the premise of the dealer, would amount to BAS. There can be no dispute that mere providing of a table space in an assessee premises would not per se amount to BAS. 12. In Chambal Motors 2008 (9) STR 275 this Tribunal had set aside the order of the Commissioner (Appeals) and remitted the matter to that authority for reconsideration of the appeals afresh in the light of the observations by this Tribunal. The facts in this case as revealed from the judgment may be noticed. The adjudicating authority confirmed the demand of tax, interest and penalty, for the assessee having provided BAS. The assessee (automobile dealer) had received commission from the bank during the relevant period in connection with advancing loans to its cust....
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....n its premises. In the context of the analysis of facts in this judgment, in our considered view the judgment does not posit a ratio constituting an exposition of the various indicia that go into classification of every transaction between an automobile dealer and a bank, as BAS. The conclusion in the judgment of this Tribunal is thus fact centric. 14. Roshan Motors Limited (supra) concluded that the assessee had provided BAS. The analysis of facts disclosed that the assessee entered into an agreement with financial institutions for arranging finance for buyers of vehicles, the basic business of the assessee; that representatives of financial institutions were accommodated in the assessee's premises; prospective buyers of vehicles were introduced by the assessee to finance companies; and the assessee was also assisting buyers in processing their documents for obtaining loans. For these the assesee received a fee from financing companies. On this factual matrix, the Tribunal concluded that the assessee was interpositioned between finance companies and their customers, to promote the products/services of finance companies and their customers, to promote the products/services o....
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....ctus of the revealed factual situation, the Tribunal concluded that the assessee was promoting and marketing the services of banks and insurance companies, was a link in the economic activity carried on by them and was therefore providing the taxable BAS. 17. In South City Motors Ltd. vs. CST, Delhi, the assessee had entered into agreements with different banks and financial institutions to market car loan products offered by the banks/financial institutions to its customers and received a commission for providing the service. The tribunal tabulated the scope of the services provided and noticed that these included facilitating certain activities of banks; scrutiny of applications; interview borrowers to verify credit worthiness; taking due and proper care and custody or post dated cheques/documents etc. collected from customers; market various types of services provided by financial institutions; and marketing various schemes including loan schemes. On this factual matrix the Tribunal concluded that the taxable BAS was provided. 18. In Tribhuvan Motors Limited (supra), the assessee's appeal was allowed and the adjudication order concluding that BAS was provided, was reve....