2018 (3) TMI 195

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....t and Schedule to the P&L Account of the appellants, it appeared that they had received incentives from insurance companies. Department took the view that service tax is required to be paid on such incentives since the same would fall under Insurance Auxiliary Service defined under Section 65 (55) of the Finance Act, 1994 and the taxable service thereof defined in Section 65 (105) (zl) ibid and hence show cause notice dt. 14.08.2008 was issued inter alia, proposing demand of service tax of Rs. 33,50,320/- with interest and imposition of penalty under various provisions of law. In adjudication, original authority vide order dt. 29.07.2009 confirmed the proposal for demand of service tax and also imposed equal penalty under Section 78 of the ....

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.... However, the incentives paid by the insurance company is therefore not to be treated as a commission or payment for soliciting insurance. (v) Even when the SCN has alleged that the appellants are doing the activity of Actuary , the adjudicating authority has held that they are an intermediary . Even though this fact was brought of the notice of the Commissioner (Appeals) it has not been considered. 3. On the other hand, Ld. A.R Shri S. Govindarajan supports the impugned order. He takes us to para 4.7 of the impugned order to point out that as seen from the invoices issued by appellant, they are predominantly doing the work of policy issuance and claims and therefore the said activity is rightly classifiable under the category o....