TaxTMI 
TaxTMI 
2017 (7) TMI 993
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.... 01.01.2004 with M/s.Shriram City Union Finance Ltd. and two others. As per this agreement, the appellant was required to collect applications for deposits/debentures, deliver debentures/deposits, receipts etc. and provide incidental services. The definition of "Business Auxiliary Services" (BAS) was amended with effect from 10.09.2004 adding sub clause (vi) which is, provision of service on behalf of the client . Vide a letter dt. 29.10.2004, appellant made a request to the department for amendment of Registration Certificate by including services provided by them under the category of Business Auxiliary Service in addition to Banking and Financial services . It appeared to the department that as per the agreement the activities in connect....
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....rtain companies with whom they had entered into agreement with effect from 01.01.2004 and that the said activity after amendment of the definition would fall under 'provision of services on behalf of the client' under Business Auxiliary Service. Ld. Advocate further submits that the activities such as mobilization of deposits, debentures, delivering deposit/debenture deposits, giving loans in respect of commercial vehicles etc. did not fall under Section 65 (19) (iii) or (iv) as they stood prior to 10.09.2004. The activities carried out by them as per these agreements would fall under Section 65 (19) (vi) introduced only with effect from10.09.2004 vide Finance Act, 2004. Since it deals with provision of service on behalf of the clie....
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.... the amendment of the definition. The appellant was under bonafide belief that the activities did not fall under BAS prior to 10.09.2004. The appellant relied the decisions in the case of South City Motors Ltd Vs. CST, Delhi - 2012 (25) STR 483 (Tri Del.), Roshan Motors Ltd Vs. CCE, Meerut, 2009 (13) STR 667(Tri-Del.), Anand Nishikawa Co. Ltd Vs CCE, Meerut 2005 (188) E.L.T. 149 (S.C.), Pushpam Pharmaceuticals Company Vs CCE, Bombay, 1995 (78) E.L.T. 401(S.C.). 3. On the other hand, on behalf of the department, Ld. A.R Shri Cletus supports the impugned order. Ld. A.R further submits that the activities carried out by the appellant would fall within the scope of BAS even prior to 10.09.2004 since they would fit in the category of promotio....
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....ude any information technology service. Pursuant to the amendment of said section w.e.f. 10.09.2004, the definition of Business Auxiliary Service read as under : "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 provided by the client; or (iii) any customer care service provided on behalf of the client; or (iv) procurement of goods or services, which are inputs for the client; or (v) production of goods on behalf of, the client; or (vi) provision of service on behalf of the client; or (vii) a service incidental or auxiliary to any activity specified in sub-clauses....
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....s include, interalia, enabling these companies to organize agents or investors meet, collecting cheques / money from the investors on behalf of these companies, processing the applications, organizing for the repayment / renewal of matured deposit / debentures, identifying any prospective customer for lending based on predetermined criteria and forwarding their particulars to these companies for approval and ensuring collection of loan / HP / lease installments and penal interest due from the borrower. 7. Appellants have opposed this allegation and have contended that their activities will not attract clauses (ii) (iii) (iv) to Section 65 (19) of the Act as it stood prior to 10.09.2004, that they did not promote or market services of Sri....