2008 (11) TMI 112

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....registration and are discharging service tax liability in respect of service being provided by them as authorized service station of General Motors. It was subsequently found that, in addition to their activity as authorized service station they were also engaged in arranging car loan from various banks/financial institutions to the car buyers for which they were getting commission from banks/financial institutions which is covered by the definition of "Business Auxiliary Services". On being pointed out by the department, they obtained separate service tax registration for Business Auxiliary Services and voluntarily paid an amount of Rs. 34,485/- as their Service Tax liability calculated on the net amount of commission being received by the....

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....suppression of value of taxable services. Against this Order-in-Review appeal No. ST/361/ 07 has been filed by the Appellant. Since both the appeals involve the same issue they were heard together. 2. Heard both sides. 2.1 Shri A.K. Dixit, learned Advocate pleaded that: (a) the appellants are commission agent and, therefore, they were not liable to pay any service tax under Notification No. 13/03-ST; (b) even if their activity is treated as Business Auxiliary Service not exempt under Notification No.13/03-ST. they are eligible for exemption under Notification No. 25/04-ST dated 10.9.2004; and (c) In any case, the department has wrongly charged service tax without taking into consideration the actual commission received by the....

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.... the banks/Financial Institutions was not disclosed in the returns filed by them, penalty under Section 75A, 76, 77 & 78 has been rightly imposed. 3. We have carefully considered the submissions from both sides. There is no dispute about the fact that the activity of the appellants i.e. arranging car loan from the banks/Financial Institutions to various clients is business auxiliary service. The appellants have pleaded that they are to be treated as commission agent and, hence, they are exempt from service tax under Notification No. 13/03-ST. We do not accept this contention of the appellants as, firstly, this point was not raised before the Asst. Commissioner and, secondly, the appellants are not commission agent as per the definition o....