TaxTMI 
TaxTMI 
2017 (4) TMI 702
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....ed as Business Auxiliary Service (BAS). 2. The appellant is represented by Mr. Bimal Jain, ld. consultant and Ms. Neha Garg, ld. Departmental Representative represented the Revenue. 3. We have carefully considered the facts on record, the submissions of both the sides and the case laws cited. 4. The Ld. Advocate based on the appeal memorandum and written submissions inter alia submits as under:- (i) The Department is alleging liability of service tax on empanelment fees recovered from the vendors as commission shown under the head „Rebate' under the category of Business Auxiliary Service (BAS) under Section 65(105) (zzb) read with Section 65(19) of the Finance Act, 1994. (ii) Empanelment fee is received as p....
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....gy Vs. CCEST, Hyderabad-III [2010 (17) STR 420 (Tri.-Bang.)] (b) Infinity Infotech Parks Ltd. Vs. Union of India [2013 (31) STR 653 (Cal.)] 4.1 Firstly we refer to the definition of „Business Auxiliary Service' and the related „taxable service' as given in the Finance Act, 1994:- Section 65 (105) (zzb) "taxable service of "business auxiliary service' means any service provided or to be provided to a client, by any person in relation to business auxiliary service. Section 65 (19) "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 pro....
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....ch goods or services; or (iii) guarantees for collection or payment for such goods or services; or (iv) undertakes any activities relating to such sale or purchase of such goods or services; 4.2 It is a fact that for every event for which the appellant gives their auditorium on hire, they are collecting „empanelment fee' from the respective vendors. From the arrangement, it is evident that the business of „Vendors' gets promoted by the appellant for which they are collecting the said fee. The same would be covered by the definition of „BAS' as defined under Section 65(105) (zzb) read with Section 65(19) of the Finance Act, 1994 and, therefore, the amounts collected as „empanelment fee' would be c....
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....to provide various services to the clients directly who avail of their services. These vendors are directly charging from the clients for services rendered by them. A fixed amount is charged by the appellant from such vendors per event for which they are engaged by the client. The appellant stated that they are not promoting the business of these vendors and the client is free to choose any vendor from the empanelled list of vendors. Therefore, they cannot be taxed under „business auxiliary services' for the fixed amount collected from these vendors. This fee is thus a sort of empanelment fee and not towards consideration for providing any services. The plea of appellant is not acceptable as empanelment fee cannot be charged from the ....
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.... rebate as argued by the appellant and comes under business auxiliary service under section 65(19)(iv) of the Act. Therefore, I am in the agreement with the findings of the Adjudicating Authority and the demand is upheld." 4.4 In case of chargeability of service tax on the „empanelment fee' collected by the appellant under the category of BAS, we are in agreement with the findings given by the lower authorities. However, there has not been any evidence available on record to state that the appellant suppressed the facts from the Department with the „intention to evade' the service tax on the empanelment fee collected by them. Therefore, the extended period in this regard cannot be invoked under Section 73(1) of the Finance Ac....