2008 (5) TMI 26

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.... wheelers. They also arrange loan from various financial institutions/banks for Hire Purchase and thus promoting/marketing of the products/services of the financial institutions/ banks for which they are getting a consideration called pay-out/incentive/commission from the financial institution/banks. The Revenue proceeded to consider the activities fall within the category of "Business Auxiliary Services". The Commissioner (Appeals) after due examination held that there is no evidence to confirm that remuneration received by the assessee are in the nature of rent or payment for business support services. The Department did not establish unequivocally that "Business Auxiliary Service" has been provided before confirming the demand. The Commi....

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....his Bench has examined the very issue in case of Silicon Honda Vs. Commissioner of Central Excise, Bangalore [2007 (82) RLT 232 (CESTAT-Ban.)=2007 (7) S.T.R. 475 (Tri.-Bang.)]. After a detailed examination of the matter, it has been held that the activity does not come within the ambit of "Business Auxiliary Services". The paragraphs 1 to 4 of the said order are reproduced herein below: "This appeal arises from Order-in-Appeal No. 103/2005 dated 21.10.2005. The financial institutions have taken a space from the appellant. The financial institutions also provide financial assistance to the customers of the appellants to purchase motor vehicles. The revenue wants to bring this activity under the 'Business Auxiliary Services'. The Commissio....

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....ce tax. It is also submitted that financial corporation are not promoting or marketing the products of the appellants. It is also submitted that financial corporation are not obliged to promote their business through the appellant. Therefore their activity cannot be brought within the ambit of "Business Auxiliary Services", as Service Tax on such services would be payable on the gross amount received by the service provider. It is submitted that in the instant case, the financial corporation does not receive any consideration from the appellant but on the other hand financial institution pays remuneration for occupying the table space at appellants' premises. 3. The learned JDR submitted that financial institutions have been paying remun....