2018 (4) TMI 1182

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....period from 1.5.2006 to 30.11.2007. According to the department, though such activities fall within the category of Business Support Services under section 65(104c) of the Finance Act, the appellants were not discharging service tax liability. Show cause notice was issued proposing to demand service tax along with interest and also for imposition of penalties. After due process of law, the original authority confirmed the demand of Rs. 4,86,133/- along with interest and also imposed penalties under sections 76 and 77 of the Finance Act, 1994. Aggrieved, the appellants filed appeal before Commissioner (Appeals) who vide order impugned herein dismissed the appeal. Hence this appeal. 2. On behalf of the appellant, ld. counsel Shri N. Quadir....

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....ank does not have any liability to pay service tax regarding the reimbursement of expenses received from the insurance companies. The ld. counsel also pleaded to waive the penalties. He submitted that whether the activities rendered by the appellant would fall within the taxable category of Business Support Service was under much confusion and the appellant had bonafide belief that the activities are not covered under Business Auxiliary Service. Therefore, prayed that the penalty may be set aside. 3. The Id. AR Shri R. Subramaniyam reiterated the findings in the impugned order. He adverted to the definition Business Support and Service and submitted that the appellant have been providing infrastructure facilities to the insurance compani....

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....vice and pricing policies, infrastructural support services and other transaction processing. Explanation -For the purposes of this clause, the expression "infrastructural support services" includes providing office along with office utilities, lounge, reception with competent personnel to handle messages, secretarial services, internet and telecom facilities, pantry and security" 6. As pointed out by the ld. AR, the explanation clarifies that infrastructural support service includes providing office along with office utilities, internet and telephone facilities. The appellant has received charges from the insurance companies for rendering such infrastructural facilities. It is very much clear that the amount received as conside....