TaxTMI 
TaxTMI 
2019 (1) TMI 1883
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....as liable for payment of service tax under clause (a)(vi) of Banking and other financial services, on receipt of the reimbursement from State Marketing Federation. (ii) Whether the appellant society was exempted from payment of service tax on reimbursement received from State Marketing Federation, under Notification No.8/2004-ST dated 09.07.2004, or any other notification. (iii) Whether in the facts and circumstances of the case, extended period of limitation under proviso to Section 73(1) could have been invoked. (iv) Whether appellants are liable for penalties under Sections 76, 77 and 78 of the Finance Act, 1994. 2. The brief facts are that - (i) Appellant is a Coopeative Society and has also been u....
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....gy." (vii) Penalties have been imposed under Section 76, 77 and 78 of Finance Act, 1994. 3. Being aggrieved, the appellant - a Cooperative Bank is in appeal. 4. Learned counsel for the appellants urges that - (i) Appellants have not carried on advisory and other auxiliary financial services including investment and portfolio research and advice, advice on mergers and acquisitions and advice on corporate restructuring and strategy. (ii) Reimbursements towards expenses on transportation, manpower, etc. cannot be classified under Clause a (vi) of the definition of Banking and other Financial Services. (iii) Appellant's activity of facilitating sale/purchase of paddy/fertilizers is in the nature of comm....
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....ere alleged to be falling. On this ground alone, notice being vague and speculative is liable to be struck down. (viii) It appears that in view of negative list entry contained in clause 'd' of Section 66 D which is relating to services in connection with agriculture or agriculture produce, department has not issued show cause notices since October, 2013, on services relating to paddy. Further, in some other similar cases of Cooperative Banks, department has not raised the demand even for the period prior to 01.10.2013. (viii) As it is a dispute on interpretation of Banking & other Financial Services, neither extended period of limitation can be invoked, nor penalties under Section 76, 77 and 78 can be imposed. 5. Accor....
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....period 2010-2011, it was stated that for the earlier years 2006-2007 to 2009-2010, the receipts for such expenses were properly accounted for and the accounts were prepared in Hindi and whereas for the years 2010-2011, their accounts were prepared in English, in which the nomenclature has been incorrectly translated from service charges to commission. However, there is no change in the nature of services provided by the appellant - Bank. Further, it is stated that they are not claiming any commission from the Markfed. It was further stated that administrative charges on Crop Insurance Premium and administrative charges on insurance premium shown during the years 2006-07 to 2010-2011 are included in the head 'service charges on fertilizer'. ....