TaxTMI 
TaxTMI 
2025 (6) TMI 1587
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....Cause Notice was issued, and thereafter respondent as per the impugned order dated 29.01.2010 confirmed the demands under Section 73(2) along with interest under Section 75 and imposed penalties under Section 76 and 78 of the Finance Act, 1994. Aggrieved by said order, present appeal is filed before the Tribunal. 3. When the appeal came up of hearing, Learned Counsel for the appellant submits that adjudication authority issued the impugned order without appreciating the facts and circumstances of the case and also without considering the evidence on record. As regards the demand of service tax on reimbursement of Banking Cash Transaction Tax (BCTT) under 'Business Auxiliary Service', as per the impugned order, service tax of Rs. 60,71,290/- was confirmed for the period from April 2006 to March 2008. Banking Cash Transaction Tax (BCTT) is a statutory levy introduced by the provisions of Chapter VII of the Finance Act, 1994. The transaction which is subject matter of BCTT involves the appellant providing service to its principals in UAE, whereby the appellant would get consideration in convertible foreign exchange from the principals in UAE for rendering the service of money excha....
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....hnocrats Private Limited-2018 (10) GSTL 401 (SC). 6. Learned Counsel submits that in view of the above judgment of the Hon'ble Supreme Court, reimbursement of expenses would not form part of valuation for the purpose of levy of service tax prior to the amendment to the Section 67 of the Finance Act, 2007 with effect from 14.05.2015. Thus, the said findings are unsustainable. 7. Learned Counsel as regards the demand for short payment of Rs. 7,80,642/- confirmed under 'Business Auxiliary Service', submits that as per Rule 6(4A) of Service Tax Rules, 1994 an assessee who has opted for Centralized registration under Rule 4(2) Service Tax Rules, 1994 is mandated to adjust the excess amount paid against the liability of subsequent month or quarter. However, it is denied by the adjudication authority on the ground that there has never been any excess payment and hence no liability to make any adjustment by the appellant. In this regard, it is observed that in the month of September, appellant has wrongly remitted the Service Tax of Rs 5,57,509/- on Banking Cash Transaction Tax (BCTT), the taxable value being Rs. 45,54,815/-. Since it being a non-Taxable item, they have adjusted the ....
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....shok and Co. Pan Bahar Ltd Vs. Commr. of Service Tax, Delhi - 2016 (42) STR 691 (Tri.- Del). The learned counsel further submits that as per the decision of the Tribunal in the matter Sunrise Traders Vs. Commissioner Customs, Mundra reported in 2022 (381) ELT 93 (Tri-Ahmd.) when the classification adopted by the department is held to be wrong, the classification adopted by the assessee cannot be disturbed. 9. The Learned Counsel submits that as regards the ineligible Cenvat credit availed by the appellant, the adjudication authority has adopted a narrow finding, and they ought to have found that the definition of capital goods under Rule 2(a) of the Cenvat credit Rules, 2004 it is specifically stated that; 2. Unless the context otherwise requires:- a) "capital goods" means:- (A) the following goods, namely:- (1) all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90 [heading 6805, grinding wheels and the like, and parts thereof fallin under heading 6804] of the First Schedule to the Excise Tariff Act; (ii) pollution control equipment; (iii) components, spares and accessories of the goods specified at ....
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....9; on the income from financial advisory service, during the period 2006-2007 and 2007-2008. The Learned AR also draws our attention to Section 65(12) of Finance Act, 1994. It relates to "Banking and Other Financial Services", which include (v). Asset management, including portfolio management, all forms of fund management, pension fund management, custodial, depository, and trust services. (vi) 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. Learned AR also draws our attention to the finding in the impugned order wherein the adjudication authority confirmed the demand on the ground that sub clause 6 of section 65(12) encompasses all advisory and auxiliary financial services, including investment, portfolio research, and advise, etc., and is wide enough to cover the services rendered by the appellant. 13. Learned Authorized Representative (AR) further draws our attention to Rule 3(2)(b) of Export of Service Rules, 2005 and submits that in the absence of any credible evidence to prove otherwise, assessee has failed to satisfy the second....
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....claimants in India which was deposited by relatives abroad. Since fee charged by company abroad from person outside India and services rendered by appellant directly to company abroad and benefit of services accruing to persons outside India, Service Tax was not payable under BAS. Tribunal relied on its earlier case in Muthoot FinCorp as reported in 2010 (17) S.T.R. 303 (Tri. - Bang.)." 18. Following the ratio of the above decisions, and also considering the evidence produced by the appellant as part of the appeal memorandum and reply to Show Cause Notice, the amount received by the appellant directly from client abroad, and benefit of services accruing to person outside India. Hence, service tax was not payable under 'Business Auxiliary Service'. 19. As regards demand under 'banking and other financial services', the issue was considered by the Tribunal in the matter Ashok and Co. Pan Bahar Ltd versus Commr. of S.T (Supra) where it is held that; "5...........Thus, the appellant was not distributor of mutual fund or agent thereof. It was only promoting and marketing the services provided by M/s. Zealous Financial Services (P) Ltd. It was in no way involved in....