2007 (12) TMI 60

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....w cause notice dated 3.1.2005 answerable to the Assistant Commissioner of Central Excise was issued to them. Making the noticee answerable to the Commissioner of Central Excise Hyderabad - II Commissionerate. The show cause notice proposed demand of service tax to the tune of Rs1,38,95,128/- towards service tax on the amounts received by the appellants during the period from 1.7.2003 to 31.1.2004 on account of providing taxable services under proviso to Section 73 (1) of the Finance Act 1994. Interest was demanded proposed under Section 75, penalty under Section 76 & 78 of the Finance Act was also proposed. The Commissioner confirmed the demand holding that the appellant is liable to pay the said amount on account of providing taxable servi....

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....nbsp;      Maintenance of Transfer Register 'Registrar' or more specifically 'Registrar to an issue' refers to a person who carries out for a corporate body, various activities relating to an offer of a sale or purchase of securities to, or from, the public or the holder of securities. A 'Share Transfer Agent' refers to a person who on behalf of any body corporate maintains the record of holders of securities issued by such body corporate and deals with all matters connected with transfer and redemption of its securities. These services have been held to be taxable under the 'Business Auxiliary Services' by the learned Adjudicating Authority on the ground that such services fall within the ambit of clause (iv) Sect....

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.... by the earlier entry. The new entry is an extension of the scope of coverage of Service Tax and not carving out a new entry, from the erstwhile entry.' Therefore it was argued that the coverage under the new category of share transfer agent services w.e.f 1.5.206 is an area not covered by the earlier category of 'Business Auxiliary Services'. Further, it was also argued that the reimbursement of the expenses would also not be liable to service tax for the period covered by the Order-in-Original. It was urged that reimbursement of expenses are not in respect of services rendered by the appellants that for various costs and expenses actually incurred by the appellants as bought out services from tax party. The learned Advocate further said t....

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....ware that the applicant's main object was carry on the activity in particular as registrar and share transfer services. In these circumstances, there is no justification in levying interest and penalty. Further, our attention was drawn to the following decision of the Tribunal. This Bench in the case of M/s. Sathguru Management Consultants Pvt. Ltd. Vs. CCE, Hyderabad [2007 (7) S.T.R. 654(Tribunal)] relying on the decision of the Tribunal in the case of CCE, Vs. Ankit Consultanacy Ltd. - 2007 (6) S.T.R 101 (Tri.-Del.) has held that Share Transfer Agent and Registrar official services not covered under the category of 'Business Auxiliary Services' prior to 1.5.2006. The decision of this Bench relied on the Ankit consultancy case decision whe....