2018 (5) TMI 1212

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....engaged in providing the service of Authorized Service Station in respect of two wheelers of TVS Motors Ltd. During the course of their business, they are also engaged in making arrangements for vehicle loans to interested customers from various financial institutions such as ICICI Bank. For this service the appellant earns commission as a percentage of the loan amounts which is reflected in their Books of Accounts. Department was of the view that these commission amounts received are by way of provision of Business Auxiliary Service and hence, service tax is liable to be paid on such commission amounts received. Accordingly, both the authorities below upheld the demand for service tax along with interest and penalties under various Section....

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.... 4.  After hearing both sides and perusal of records, we find that the activity undertaken by the appellant is in addition to the service of provision of Authorized Service Station. The act of receiving commission for facilitating loans for various financial institutions will be covered within the category of Business Auxiliary Service' since such service has been provided by the appellant on behalf of financial institutions. But the claim of the appellant is that for the entire period under dispute, the benefit of the two Notifications will be available to the appellant. 5.  We have perused the Notification No. 25/2003 dated 01.07.2003. It provides exemption to the portion of the value of various taxable services including....

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.... justification for demand of service tax for the above period. 6.  Next we consider the benefit of Notification No. 14/2004 dated 10.09.2004. This Notification has granted the benefit, among other services, to the provision of service on behalf of the client but the benefit is restricted to only those categories of service providers other than the seven categories specified under the provisions of the above Notification. During the course of arguments, the learned counsel for the appellant has specifically submitted that the appellant is a proprietary concern as evidenced by the Registration certificate which has been issued in the name of "Bridgestone Agencies, Prop: Sharath M. Reddy". Since the appeHant does not fall in any of the....