2017 (3) TMI 871

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....R. Sharma, DR for the Respondent ORDER The present appeal is directed against the order in appeal dated 18.11.2010 passed by the Commissioner (A) Jaipur. The appellant is working as a finance broker. Nature of activity is that he provides the platform for persons who temporary have surplus funds for lending to persons who need money for running their business temporarily. In this process, th....

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....or the Respondent. 4. Ld. Counsel for the appellant submits that the activity of the appellant is not covered within any of the sub-clauses of "Business Auxiliary Services". He further submits that the consideration has been received from the borrower through the services were provided to the lender. Accordingly, the activity cannot be classified under "Business Auxiliary Services". He further ....

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.... written or implied, with either the financier or the borrower; nor is there any responsibility cast upon the appellant in the event of default on the part of financier or the borrower. Accordingly, the appellant fails the test of description as agency or agent for classification as commission agent under section 65(19) of Finance Act, 1994. There is no force in the argument that rendering any act....

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....he circular relied upon in the impugned order appears to have been mis-applied by the adjudicating authority; the circular clarifies that automobile dealers getting commission from finance companies for promoting or marketing their auto loan packages among car buyers are taxable. The activities of the appellant may indeed benefit the various empanelled financiers with increased business but the ap....