TaxTMI 
TaxTMI 
2016 (11) TMI 836
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.... financial institutions. 2. The brief facts are that the Revenue on the basis of information that banks and financial institutions were paying commission to the direct selling agent(s) and most of these direct selling agents are not paying service tax on the commission received by them from banks or financial institutions, collected information from the banks and institutions. Whereas on the basis of details received from ICICI Bank Ltd., it appeared that the appellants have received the commission of Rs. 4,08,879/- during the period 3rd July to October, 2007. SCN dated 10-4-2008 was issued as it appeared to Revenue that the appellant was required to pay service tax on this commission earned calculated at Rs. 44,448/- inclusive of c....
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....rvice for and on behalf of the banks, and as such no service tax is exigable. They are only getting share of income from banks/finance companies out of their income. The amount received by them is in the nature of incentive and the same is not equal to commission. Further, such receipts are disclosed in the account and balance sheets as "incentive from finances". 4. The show cause notices were adjudicated vide Order-in-Original dated 30-11-2009 and the proposed demands were confirmed along with equal amount of penalty under Section 78. Further, equal amount of penalty was imposed under Section 76 and further penalty of Rs. 1,000/- was imposed for failure to take the service tax registration and to assess the service tax liability an....
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....ks, if service tax on the transaction was paid by them; (ii) The SCN dated 18-2-2008 is time-barred as the demand pertains to the period 2003 to 2007, beyond one year prescribed under Section 73, extended period is not invocable; (iii) Commission received is disclosed in profit and loss account, balance sheet as "Incentive from Finance"; (iv) Banks/Finance Companies have already paid service tax on the commission paid by them; (v) Appellant is not acting on behalf of Bank, as the customers of appellant are free to get finance from any Bank/Finance Company of their choice; (vi) Liability to service tax, if any, is on Bank/Financial Institutions. Appe....
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....lso take notice of the Larger Bench's decision of this Tribunal dated 12-9-2013 as reported in 2014 (33) S.T.R. 506, wherein taking notice of several conflicting decisions of Tribunal, the Larger Bench observed as follows : "20. On a consideration of the apparent conflict of opinion in the decisions mentioned in the order of reference and the other decisions which were cited at bar, it is clear that no uniform principle emerges as would guide determination of whether a particular transaction involving an interface between an automobile, dealer and bank or financial institution would per se amount to BAS. The identification of the transaction and its appropriate classification as the taxable BAS or otherwise must clearly depend upon ....