TaxTMI 
TaxTMI 
TaxTMI 
2014 (6) TMI 627
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....nk and sourcing of the credit documents and other necessary papers required by ICICI bank for sanctioning loans are registered under the category of Business Auxiliary Service (BAS) and have been filing ST-3 Returns. It is alleged that they did not discharge the service tax liability on the commission received from the said bank for providing the said services during the period 10.9.2004 to 15.6.2005. Accordingly, a Show Cause Notice dated 12.06.2007 was issued by Central Excise Division Patiala demanding, Service Tax amounting to Rs.1,76,771/- invoking the extended period alleging wilfull misstatement and suppression of facts. The adjudicating authority confirmed the said demand and imposed penalty of an equal amount under Section 76 of th....
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.... is as under:- Month Value of Commission shown in ST-3 return (Rs.) Actual value received as annexure to SCN (Rs.) Sept., 04 130387 130414 Oct., 04 ST-3 not filed 142565 Nov., 04 -do- 161868 Dec., 04 -do- 202828 Jan., 05 -do- 192678 Feb., -do- 108956 March, 05 -do- 345783 April, 05 Nil 241427 May, 05 Nil 321429 It has been reported by the division that the party has not filed ST-3 returns for the period 1.10.04 to 31.03.05. The party had shown Nil commission for the month of April, 05 and May, 05 whereas the figures admitted by the party during investigation are Rs. 241427/- and Rs. 321429/- respectively. So, it is clear that the party had suppressed the information with the intent to evade the....
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....cts, deeds, things as described in this agreement and as directed by ICICI Bank. The agreement describes in detail as to what they can and cannot do. 4. We have considered the submissions of Revenue and the Respondents. The entry for Business Auxiliary Service from 10.09.2004 is as under:- 'Business Auxiliary Service' means any service' in relation to:- (i) Promotion or marketing or sale of goods produced or provided by or belonging to the client; Or (ii) Promotion or marketing of service provided by the client; or (iii) Any customer care service provided on behalf of the client; or ....
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....se 20 of the agreement specifically states that the Respondents shall provide service on an exclusive basis to ICICI Bank. Thus, it is evident that services provided by the Respondents are in the nature of promotion and marketing provided to the ICICI Bank for which the bank paid them. Thus, the Respondent's services do not fall under the category of 'provision of service on behalf of the client'. 7. Notification 14/2004-ST, dated 10-9-2004 reads as under: "In exercise of the powers conferred by sub-section (1) of Section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exem....
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....r body corporate, as the case may be, provides any business auxiliary service in respect of any activity specified in (a) to (d) above in relation to agriculture, printing, textile processing or education The Respondents have claimed that they fell under category (c) above. However, as discussed earlier, the service rendered by the Respondents clearly falls outside the scope of 'provision of service on behalf of the clients' and hence they are not eligible for the benefit of the said notification. CESTAT in its order No. 2012 (25) STR 499 (Tri.-Del.) passed in case of Auto Motors & Financed Service Vs. Commissioner of Central Excise Gurgaon on the similar issue has also held accordingly. 7. However, it is observed that the Respondents pai....