2015 (11) TMI 229

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....herein had received some amount from various financial institutions as commission for marketing of Auto Loan products and also an amount from manufacturers of car under the head Target Incentive Scheme. It was noticed that the appellant had not discharged the Service Tax liability on such amounts. Show-cause notice was issued demanding the Service Tax liability along with interest thereof and also proposed for imposition of penalty for the extended period. Appellant contested the issue on merits as well as on limitation. The adjudicating authority after following the due process of law, confirmed the demand raised and also demanded interest, in addition imposed penalties. 3. The learned Counsel would submit that as regards the tax demand....

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....x liability under this head is upheld along with interest. Since the issue of whether such amount received by an assessee from financial institution for promoting the products like auto loan etc, would be taxable or not, has been settled by the Larger Bench, we find that the appellant could have entertained a bona fide impression that such amounts received as commission are not taxable. Accordingly, by invoking the provisions of Section 80 of the Finance Act, 1994, we set aside the penalties that are leviable on this count. 5.1 As regards the Service Tax liability under the category of Business Auxiliary Services for the amount received and for achieving the target under Target Incentive Scheme, we find that the appellant had been given ....