TaxTMI 
TaxTMI 
2019 (9) TMI 670
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.... conversion fee Business Auxiliary Service Service provider 01.04.03 to 31.03.05 4,48,907 3 Advertising agency services Advertising Agency Service Service recipient 18.04.06 to 31.03.07 34,269 4 Design and consultancy charges Interior Decorator Service Service recipient 18.04.06 to 31.03.07 10,14,904 5 Reservation expenses, Hyatt Gold Passport, Hyatt Chain services Maintenance or Repair Service Service recipient 18.04.06 to 31.03.07 63,69,613 6 Subscription and maintenance of software Management or Repair Service Service recipient 18.04.06 to 31.03.07 2,81,204 7 Fee paid to M/s Hayatt International Asia Pacific Ltd. for operation of the hotel Management Consultancy Service Service recipient 18.04.06 to 31.03.07 1,01,26,404 8 Miscellaneous payments to M/s Hayatt International Asia Pacific Ltd. in connection with operation of the hotel Business Auxiliary Service Service recipient 18.04.06 to 31.03.07 25,91,035 Total 2,14,61,690 2. The impugned order seeks to appropriate an amount of Rs. 63,61,691/- against the demand ....
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.... 3,453/- The Appellant had only deposited Rs. 34,039/- as against liability of Rs. 37,492/-. Hence, differential amount is recoverable. Demand on reverse charge basis on expenditure incurred by the Appellant 5 'Advertisement agency service' Various payments made in foreign currency towards: (a) Hyatt chain services (b) Other third party service providers for publishing/ flashing of advertisement at international level 1.10.2002 to 31.03.2007 57,60,387/- The expenditure booked under the head 'advertisement expenses' is consideration for 'advertisement agency service'. The Appellant as service receiver is liable under 2(1)(d)(iv) 6 'Interior decorator service' Amount paid in foreign currency to overseas interior decorators 1.10.2002 to 31.03.2007 21,95,647/- The expenditure booked under the head 'design & consultancy charges' is consideration for 'interior decorator service'. 7 Business Auxiliary service Various payments made in foreign currency towards: (a) Hyatt Gold Passport Program (b) Hyatt Chain services (c) Hyatt Reservation Services (d) Other booking/travel agents 1.7.2003 to 31.3....
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....rvices Agreement' executed between the owner (M/s Asian Hotels Ltd.) and Hayatt International Asia Pacific Ltd. (Hayatt International) and they are as follow:- "SALES & MARKETING AND MANAGEMENT SERVICES AGREEMENT THIS AGREEMENT, dated and executed this 18th day of December, 1993, by and between ASIAN HOTELS LIMITED (the owner") organized in India, and HYATT INTERNATIONAL -ASIA PACIFIC, LIMITED ("Hyatt"), a company organized in Hong Kong, and a wholly-owned subsidiary of Hyatt International Corporation ("H.I."). WHEREAS, Owner owns the existing 535 room hotel located at Bhikaji Cama Place, M.G. Marg, New Delhi-110 066, India, and presently operated under the name of "Hyatt Regency Delhi" (the "Hotel") and wishes to maintain the Hotel under standards comparable to those prevailing in "Hyatt Regency" hotels throughout the world; -------------------- WHEREAS, Owner agrees that, in order to achieve better sales and marketing within India and the international worldwide markets; and to achieve the technology transfer of professional international hotel management systems and operating-standards for hotels and the largest innovations in compute....
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....ces in the Hotel (except for the health (fitness) centre, including the beauty salon, flower shop and business centre), provided that the tenants or concessionaries are required to operate their business to a standard commensurate to the standard of the Hotel. The rentals or other payments received by Owner under each such lease or concession shall not be included in the Revenue of the Hotel. Section 4. Management Services. Without limiting the generality of the foregoing, during the Operating Term Hyatt, through the General Manger, shall, in consideration of its fees and subject to reimbursement of its expenses as hereinafter provided, inter-alia, (a) Ask for, demand, collect and give receipts for all charges, rents and other amounts due from guests, patrons, tenants, sub-tenants, concessionaries and other third parties providing services to guests of the Hotel and, when desirable or necessary, cause notices to be served on such guests, patrons, tenants, sub-tenants and concessionaries to quit and surrender space occupied or used by them; (b) Arrange for association with one or more credit card systems in conformity with H.I. 's general policy in such re....
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....tion of the Hotel deemed necessary or advisable by Hyatt and/or the General Manager, and Owner shall have the right to participate in and approve any settlement or compromise thereof; (m) Install and maintain the accounting books and records in accordance with the provisions of Section 1 of Article V and other information systems required for the efficient operation of the Hotel; (n) Subject the accounting books and records and operations systems of the Hotel to review by internal auditors of H.I. or its affiliates; and (o) Maintain and enhance the computer software for the hotel operations management system. Section 5. Operating Bank Accounts(s). Owner shall, by resolution of its Board of Directors, open three bank accounts in the commercial bank designated by Owner and in the trade name of Hyatt Regency Delhi" (Operating Account "A", Operating Account "B" and a "Foreign Currency Account") (hereinafter called the "Hotel Operating Accounts"). All funds received from the operations of the Hotel shall be deposited into Operating Account "A" and all disbursements of the entire cost and expense of maintaining, conducting and supervising the operation....
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....uing to the Hotel arising out of services performed by such trainees. Section 9. Agency Relationship. In the performance of their duties as manager of the Hotel and/or the General Manager shall act solely as agent of owner. All debts and liabilities to third persons incurred by Hyatt and/or the General Manager in the course of their operation and management of the Hotel shall be the debts and liabilities of Owner only and Hyatt and the General Manager shall not be liable for any such obligations by reason of their management, supervision, direction and operation of the Hotel for Owner, Hyatt and/or the General Manger may so inform third parties with whom they deal on behalf of Owner and may take any other reasonable steps to carry out the intent of this paragraph. Section 10. Hyatt's Right to Reimbursement. During the term of this agreement, Hyatt may elect to advance or to cause H.I. or any of its affiliates to advance it own funds in payment of any costs and expenses incurred for the benefits of the hotel operation that Hyatt and/or the General Manager shall have the right or the obligation to incur or cause to be incurred in accordance with the provisions of th....
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....mmodation and living costs in Delhi, home leave expenses and their incentive compensation, if any, shall be paid by the Hotel and charged to the operating expenses of the Hotel. The appointment of all expatriate personnel shall, if required, be subject to the approval of the Reserve Bank of India. (d) The General Manager, with the assistance of the Director of Human Resources and/or the other Executive Committee members, shall (a) recruit, interview, and hire employees of the Hotel and pay all salaries, wages, taxes thereon as appropriate, and social benefits; (b) negotiate, with the full cooperation, assistance and participation of Owner, with the Labour Union, the employees, collective bargaining agreement; (c) determine, in consultation with Owner, the range of the annual salary increase for all the employees of the Hotel, including the Executive Committee members and key executives; (d) determine, in consultation with Hyatt and Owner, annual salary increases and other benefits of ht Executive Committee members; (e) determine the annual salary increase and other benefits of other key executives; ARTICLE IV MANAGEMENT FEES AND OWNER'S PROFIT DISTRIBUTION S....
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....ction of Hyatt's fees provided for in section 1 of this Article (hereinafter referred to as "owner's Profit Distribution") on a monthly basis. Subject always to the retention of sufficient working capital, owner's Profit Distribution for each calendar month shall be appropriated to owner within sixty (60) days following the end of such month." 7. Each of the heads under which the demand has been confirmed shall be analyzed separately in the order the submissions were made by the learned counsel appearing for the Appellant. SERIAL NO. 7 FEE PAID TO HAYATT INTERNATIONAL FOR THE OPERATION OF THE HOTEL --- MANAGEMENT CONSULTANCY SERVICE 8. The findings recorded by the Commissioner under this head are contained in paragraph 31.3 of the order of the Commissioner and the relevant portion is as follows:- "Now I perused the definition of Management Consultant Service. In terms of Section 65(65) of the Act "management or business consultant" means any person who is engaged in providing any service, "either directly or indirectly, in connection with the management of any organization or business in any manner" and includes any person who renders any advice, consulta....
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.... Representative of the Department, however, supported the findings recorded by the Commissioner on this issue and contended that the service provided to the Appellant by Hyatt International would fall under the category of "management consultant' service. 12. In this connection, the learned Authorised Representative pointed out that : (i) The agreement dated 18 December, 1993 of the Appellant executed with M/s Hyatt International Asia Pacific Ltd., Hong Kong, is a Management Agreement; (ii) The services contemplated under the agreement are management services and even otherwise in common parlance, managing the affairs would be management service; (iii) Section 65(105)(r) of the Finance Act, 1994 the Act defines "taxable service" for management consultant to mean any service provided or to be provided, to any person, by a management consultant in connection with the management of any organization or business, in any manner. It has been emphasized that this taxable service encapsulates three propositions, namely - (a) The service should be provided by a management consultant (b) The service should be provided in connection with the mana....
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....anagement, logistics management, procurement and management of information technology resources or other similar areas of management." 15. Section 65(65) of the Act was amended w.e.f. 01 June, 2007 and the amended definition of "management or business consultant" as contained in Section 65(65) of the Act is as follows : "65(65) "management or business consultant" means any person who is engaged in providing any service, either directly or indirectly, in connection with the management of any organisation or business in any manner and includes any person who renders any advice, consultancy or technical assistance, in relation to financial management, human resources management, marketing management, production management, logistics management, procurement and management of information technology resources or other similar areas of management". 16. In the present case, as the period in dispute is from 18 April, 2006 to 31 March, 2007, the definition of 'management consultant', as it stood prior to 01 June, 2007 would be relevant. 'Management consultant' has been defined to mean any person who is engaged in providing any service in connection with the management of any o....
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....rvices from or through Hyatt International or any of its affiliates. 18. It is, therefore, clear that Hyatt International carries out the operation and management of the hotel for the Appellant under the agreement. It is not engaged in providing any service in connection with the management of the hotel. It is itself running the hotel. Hyatt International also does not render any advice, consultancy or technical assistance to the Appellant. It needs to be noted that actual running or managing an organization cannot be the same as providing any service in connection with the management of the organization. 19. Section 65(105) of the Act deals with 'taxable service'. Prior to the amendment made on 01 June, 2007, section 65(105)(r) read as under : "65(105)(r) 'taxable service' means any service provided or to be provided to a client, by a management consultant in connection with the management of any organization in any manner." 20. It is difficult to comprehend, on a plain reading of the agreement, that Hyatt International is providing any service to the Appellant as a 'management consultant'. 21. In this connection, it would be appropriate to refer to a decision....
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.... appropriate upon the terms and conditions recorded herein ....". The above portion of the Agreement makes it abundantly clear as to what the true and only actual purpose of the Agreement is. The Agreement states unambiguously that, for mutual benefit, IHCL shall run, develop, conduct, operate manage .... Carry out all activities of running the hotel. The ld. Counsel has rightly placed reliance on the judgments cited in para 6.2 while contending that they cannot render service to themselves and that sharing of expenses/profit cannot be treated as a service. 54. For all the reasons stated above, in my view, the activities of IHCL in operating the hotel cannot be called as a service rendered under the category of Management Consultancy service." [emphasis supplied] 22. It will also be useful to refer to a decision of the Tribunal in Basti Sugar Mills Co. Ltd. The Appellant was engaged in the manufacturer of sugar. Under an agreement dated 28 September, 2001 with Indo Gulf Industries Ltd., it took over the management of the sugar mill of Indo Gulf Industries Ltd. situated at Maizapur. The Department treated the said agreement as 'management consultant' agreemen....
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....nality, relying upon which the Tribunal has dismissed the present appeal. In view of above, this appeal is dismissed but without any order as to costs." 24. The learned Authorized Representative of the Department, however, submitted that the service contemplated under the agreement is of 'management consultant' and as it relates to managing the affairs of the hotel, it would be a taxable service. 25. According to the learned Representative, a 'management consultant' under section 65(65) of the Act would mean a person engaged in providing any service, either directly or indirectly, in connection with the management of any organization, of any business, in any manner. The definition also includes a person who renders advice, consultancy or technical assistance. The definition has, therefore, two parts. The first is contained in the "means part", and the second is contained in the "includes part". The "includes part" expands the meaning contained in "means part" by including various categories or things not otherwise included in the "means part". Thus, on a complete reading of the definition, the service rendered by Hyatt International to the Appellant would be a servic....
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.... and brings in to the definition clause persons, objects, or things that would not otherwise be included within the "means" part." [emphasis supplied] 27. Learned Authorized Representative of the Department also submitted that as the definition of 'management consultant' uses "directly" or "indirectly", a very wide meaning has to be given and in this connection reliance was placed on the judgment of the Bombay High Court in Oil & Natural Gas Corporation Ltd. v/s Commissioner of Central Excise, Service Tax and Customs, Raigad 2013 (32) S.T.R 31 (Bom.). 28. It is also not possible to accept this submission of the learned Authorized Representative of the Department. The use of the words 'directly' or 'indirectly' will not lead to a conclusion that a 'management consultant' would also include a person who has not only been engaged for providing any service in connection with the management of the organization, but also a person who is actually managing the organization. The decision of the Bombay High Court in Oil & Natural Gas Corporation Ltd. holding that 'directly' or 'indirectly' has a wide import would, therefore, not come to the aid of the Department. 29. Learned Auth....
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...., chef salary, musician fee, training charges, credit cards, audit fee etc. are in the nature of services arranged by M/s Hyatt International Asia Pacific Ltd., Hong Kong, for the proper operation of the hotel as mentioned in the said clause and are liable to be taxed under Business Auxiliary Services." 33. The impugned order has confirmed the demand of Service Tax on the expenses reimbursed to Hyatt International under the category of 'business auxiliary service' as a service recipient. The period is from 18 April, 2006 to 31 March, 2007. 34. Learned Counsel for the Appellant pointed out that the Appellant had agreed to reimburse Hyatt International of the expenses incurred by it in running the Hotel on actual basis as provided for in section 10 of Article III of the agreement. Learned Counsel further submitted that the expenses reimbursed are not towards provision of any 'business auxiliary service', but are part and parcel of the overall agreement for operation and management of the hotel. In any case, the impugned order does not justify the charges towards any specific activity specified in the definition of 'business auxiliary service' under section 65(19) of the Act. In....
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....been reproduced in paragraph 6 of this Order. It provides for reimbursement on actual basis. 38. The submission of learned Counsel for the Appellant is that the amount received towards reimbursement cannot be treated as a consideration for provision of service in terms of Section 67 of the Act. 39. This section 67 deals with valuation of taxable services for charging service tax. Sub-section (1) of Section 67 provides that where service tax is chargeable on any taxable service with reference to its value, then such value shall, where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by the service provider. It is, therefore, clear that only such amount is subject to service tax which represents consideration for provision of service and any other amount which is not a consideration for provision of service cannot be subjected to service tax. 40. Section 67 of the Act was considered and explained by the Supreme Court in Intercontinental Consultants. The appellant therein was providing consulting engineering services. It received payment not only for the services provided ....
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....o be decided was whether Section 67 of the Act permits subordinate legislation to be enacted as done by Rule 5. It needs to be noted that prior to 19 April, 2006, in the absence of a Rule, the valuation was required to be done as per the provisions of Section 67 of the Act. The Supreme Court noticed that the charging Section 66 provides that there shall be levied service tax @ 12% of the value of taxable services referred to in the sub-clauses of Section 65 and collected in such manner as may be prescribed. Thus, the service tax is on the "value of taxable services" and, therefore, it is the value of the services which are actually rendered which has to be ascertained for the purpose of calculating the service tax. It is for this reason that the Supreme Court observed that the expression "such" occurring in Section 67 of the Act assumes importance. It is in this context that the Supreme Court in paragraph 26 observed that the authority has to find what is the gross amount charged for providing "such" taxable services and so any other amount which is calculated not for providing such taxable service cannot be a part of that valuation as the amount is not calculated for providing "su....
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.... Central Excise, Mumbai vs Staarship Technologies Limited 2018 (8) GSTL 446 (Tri.-Mum) 45. The learned Authorised Representative of the Department submitted that the findings recorded by the Commissioner that the subscription and maintenance of software would fall under the 'maintenance or repair services' is justified. 46. The period involved is from 18 August, 2006 to 31 March, 2007. The contention of the Appellant is that maintenance of software is not covered under 'maintenance or repair services' prior to 01 June, 2007, as it is only from 01 June, 2007 that an Explanation was introduced in the definition that stipulated that 'goods' would include computer software. The definition of 'management, maintenance or repair' contained in Section 65(64) of the Act, prior to 01 June, 2007, is as follows : "65(64) "management, maintenance or repair" means any service provided by- (i) any person under a contract or an agreement; or (ii) a manufacturer or any person authorised by him, in relation to,- (a) management of properties, whether immovable or not; (b) maintenance or repair of properties, whether immovable or not; or ....
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....ve into consideration, it is to clarify that maintenance of Software is not chargeable to Service Tax." 49. However, this position was re-examined by the Board in 2005 in view of the judgment of the Supreme Court in Tata Consultancy Services vs State of Andhra Pradesh 2004 (178) ELT 22 (SC) and it was provided that software being goods, any service in relation to maintenance, repair and service of software would be liable to Service Tax as it would be a service provided by any person in relation to management, maintenance or repair. The Circular dated 07 October, 2005 is reproduced below : "CIRCULAR NO. 81/2/2005-ST, DATED 07-10-2005 Board has examined the leviability of service tax on maintenance or repair or servicing of software under section 65(105)(zzg) read with section 65 (64) of the Finance Act , 1994. 2. Supreme Court in the case of Tata Consultancy Services vs State of Andhra Pradesh (Civil Appeal no 2582 0f 1998) [2004 (178) ELT 22 (SC)] has observed that all the tests required to satisfy the definition of goods are possible in the case of software and in computer software the intellectual property has been incorporated on media for the purpose of....
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.... are as follows : "2. The petitioner which is engaged in the business of publishing newspapers and periodicals had entered into a contract on 31-10-2000 with CCI Europe A/S Denmark for the supply of software for pagination system. That apart, an agreement for maintenance of software was also entered, by which the petitioner paid DKK 2,209,690 equivalent to Indian Rs. 1.66 crores (approximately). (a) The second respondent issued a circular on 17-12-2003 to the effect that the software service would be outside the purview of service tax and it is also stipulated in Section 65(19) of the Finance Act, 1994 that it does not include Information Technology Services and as per the explanation to that Section, the maintenance of computer software is included in information technology service. (b) After the judgment was rendered by the Supreme Court in Tata Consultancy Service v. State of Andhra Pradesh [(2005) 1 SCC 308 = 2004 (178) E.L.T. 22 (S.C.)], wherein it was held that canned software amounts to tangible property and when the same is sold it would be liable for sales tax, the second respondent issued the impugned circular dated 7-10-2005 to the effect that ....
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....ds' would include 'Computer Software', even though this Explanation was added w.e.f 01 June, 2007 and the period in dispute is from 18 August, 2006 to 31 March, 2007. 53. It is, therefore, not possible to sustain the demand made by the Commissioner under this head. SERIAL NO. 5 RESERVATION EXPENSES, HYATT GOLD PASSPORT, HYATT CHAIN SERVICES --- BUSINESS AUXILIARY SERVICE 54. The findings on this issue are contained in paragraph 29.1 and 29.3 of the order of the Commissioner and are reproduced below : "In the written reply to the SCN, regarding the nature of Hyatt Chain Services received from M/s Hyatt Chain Services Ltd. (HCSL), the party contended that HSCL merely undertakes certain promotion activities for the Hyatt Chain of Hotels as a whole and thereafter passes on the cost of the same to various Hyatt hotels on actual basis without any mark up. The arrangement between the party and other Hyatt hotels was merely that of sharing of joint promotional expenses at global level. In any case, the relation between the party, other Hyatt hotels and HSCL was not that of service provider and clients. As regard to the nature of Hyatt Gold Passport Program, the p....
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....ing the minimum requirements can become a member of the Hyatt Gold Passport Program. This program is meant for building guest loyalty for Hyatt chain of hotels and for establishing continuous relationship between the guests and the chain. The members of this program are provided exclusive services, benefits, promotions, awards etc. at the Hyatt hotels. The program also entitles members to earn bonus points on 'eligible charges' expended at the Hyatt hotels. These bonus points can, in turn, be redeemed by the members for availing services at any of the Hyatt hotels. The program is internationally conducted by M/s Hyatt Corporation, which maintains the information relating to the bonus points earned and redeemed by the members. As per the scheme, the cost of the bonus points awarded to the guests is borne by the hotel where such bonus points are earned. On the other hand, compensation is given to the hotel where such bonus points are redeemed by the guests. M/s Hyatt Corporation also acts as a clearing house for settlement of dues relating to bonus points between the Hyatt hotels. 58. Learned Counsel further submitted that the amount paid by the participating Hyatt hotels includin....
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....rvices to help the Appellant and the group companies in sales, marketing and promotion of their business. The demand was initially satisfied by the Appellant but thereafter shared with the other group companies on proportionate basis. The Adjudicating Authority held that the amount paid by the group companies to the Appellant was a taxable consideration. This was not accepted by the Tribunal. It was found that the arrangement was such that all the group companies would benefit for such expenses which, though initially borne by the Appellant, were subsequently shared. Thus, there was no scope for imposition of tax liability on the Appellant under the category of 'business auxiliary service'. The Tribunal also noted that the original order did not identify the sub-clause of 'business auxiliary service' under which the Service Tax was sought to be confirmed. The relevant portion of the decision of the Tribunal is reproduced below : "4.............The facts of the case are that the appellant along with group companies involved in similar business had an arrangement in writing to procure services which will help the appellant and group companies in sales, marketing and promotio....
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....for all the reasons stated above, it is not possible to sustain the confirmation of demand under this head. SERIAL NO. 4 DESIGN AND CONSULTANCY CHARGES --- INTERIOR DECORATOR SERVICE 65. The finding of the Commissioner under this head are contained in paragraph 28 of the order and is reproduced below : "28............On perusal of the submissions of the party and the definition of the 'Interior Decorator Services', I find that the expenditure incurred by the party in foreign currency on account of Design & Consultancy charges are covered under the definition of the said service and the expenditure is liable to service tax." 66. The Appellant does not dispute the liability to pay Service Tax under this head but the imposition of penalty is contested. 67. The learned Counsel for the Appellant pointed out that Section 66A of the Act was inserted by Finance Act, 2006 w.e.f 18 April, 2006. The relevant portion of the said Section is reproduced below : "66A. (1) Where any service specified in clause (105) of section 65 is, - (a) provided or to be provided by a person who has established a business or has a fixed establishment from which the....
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.... discharging further service tax liability. In such scenario, we find no justification to invoke the extended period for demand." 69. The same principle will apply for imposing penalty under Section 78 of the Act as has been held by the Tribunal in Sakthi Sugars Limited vs Commisioner of Central Excise, Salem 2017 (9) TMI 30 and Skipper Electricals Limited vs. Commissioner of Central Excise, Jaipur-I 2017 (9) TMI 91. 70. In Sakthi Sugars Limited the Tribunal held : "8. The learned counsel has strongly argued on the ground of limitation and also on the penalties imposed. It is correct that there was much controversy as to the liability to pay service tax under reverse charge mechanism during the relevant period. Prior to introduction of Section 66A in Finance Act, only the Rules provided for such levy and the doubt was whether there can be levy of service tax merely by providing in the rules, without having a charging section in the Act. The issue was set to rest by the judgment rendered in the case of Indian National Shipowners Association (supra). The decision was rendered in the year 2009 and was maintained by Supreme Court. This along with the fact that appellants....
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....of Section 65(105)(e) of the Act, any advertisement services, in any manner, are taxable. Thus, I find that the expenditure incurred by the party in foreign currency is taxable amount in terms of Section 65(105)(e) of the Act and such services are covered under the definition of "Advertising Agency" in terms of Section 65(3) of the Act under the reverse charge mechanism in terms of the provisions of Rule 2(1)(d)(iv) of the ST Rules read with Section 68(2) of the Act." 74. The period of dispute is from 18 April, 2006 upto 31 March, 2007 and tax has been levied as a service recipient. The appellant does not dispute the liability to pay Service Tax under this head. The imposition of penalty is, however, contested. 75. The submissions advanced by the learned Counsel for the Appellant for contesting the penalty under this head are the same as advanced for contesting the penalty under the earlier head 'Design and Consultancy Charges'. For the reasons stated, while dealing with imposition of penalty under the said head, the imposition of penalty under this head cannot also be sustained. SERIAL NO. 2 CURRENCY CONVERSION FEE --- BUSINESS AUXILIARY SERVICE 76. The findin....
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....i) Yash Motors vs Commissioner of Central Excise, Jaipur-II Final Order No. 52016/2018 dated 25.05.2018 in A.No. ST/54372/2014 79. The learned Authorized Representative of the Department, however, supported the confirmation of demand under this head. 80. It has to be determined whether currency conversion charges can be subjected to levy of Service Tax under the category of 'business auxiliary services'. These charges are stated to have been received from the hotel guests towards conversion of currency and the service said to have been rendered by the Appellant is independent and not on behalf of anybody or in the capacity of an agent. In M/s Marudhara Motors, a Division Bench of the Tribunal examined whether document processing charges received from the buyer of the vehicle could be subjected to levy of Service Tax under 'business auxiliary services'. The Tribunal found that service was being provided to a client for and on behalf of the financial institutions or banks. It was for providing documentation that charges were claimed from the customers and since there was no involvement of any third party on whose behalf service could be said to have been provided to the custome....