2008 (6) TMI 79

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.....K. Madan, Authorized Representative (DR) for the appellant. None for the Respondent. [Order per S.S. Kang, Vice President] - Heard learned SDR as none appeared on behalf of respondent in spite of notice. Revenue filed this appeal against the impugned order, whereby the Commissioner (Appeals) held that respondents are not providing any Business Auxiliary Service as bank is not the client of ....

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...., the Banks are not the clients of the assessees. In paragraph 10 of the impugned order, he refers to the definition of 'Business Auxiliary Services' by observing that the tax is on the commission received from the client. It is observed that the assessees were not getting any remuneration or fees directly from the client and, therefore, they did not satisfy the requirement of the definiti....

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....was no allegation in the show cause notices that, the Banks were not discharging their service tax liability. 6. It is obvious from the reasoning adopted by the Commissioner (Appeals) that he has proceeded on totally an erroneous footing that, a bank cannot avail of 'Business Auxiliary Services' as a client. From the nature of agreements on record including the franchisee agreement in t....

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....ents had undertaken to process those applications and after scrutiny forward them to the bank. Admittedly, for such services, they were paid commission by the bank, which was reflected in their account. Once consideration accrued to them, as against the services provided by them to the bank, by way of commission, it was hardly of any consequence how a portion of that commission, which as per the p....