TaxTMI 
TaxTMI 
2026 (5) TMI 437
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....liary Service is sustainable or not. 2. The Appellant is providing various services such as manpower recruitment service, supply agency services, etc. Alleging that the Appellant failed to declare service tax as payable by them for the period from 09/2004 to 09/2008 on various services provided by them, proceedings were initiated and show cause notice was issued on 27.04.2009 confirming demand of service tax. Thereafter Adjudication authority as per the Order-in-Original dropped the demand of service tax in respect of manpower recruitment and supply services and cleaning agency services. However, confirmed the demand amounting to Rs. 4,15,919/- on taxable value for the services provided to M/s Kotak Mahindra Bank and M/s ICICI Bank. Aggr....
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....ceives certain amounts and the same are accounted under the heading "Commission". It appears that these services are classifiable under the taxable category of Business Auxiliary Services with effect from 10-9-2004 and from 1-5-2006, the same activity is covered more specifically under the taxable category of Recovery Agents' Services." 4. The Learned Counsel submits that considering the activities carried out by the Appellant, none of the activities are falling under the category of Business Auxiliary Service. In this regard, the Learned Counsel further draws our attention to the Interim Stay Order dated 06.06.2014 issued by this Tribunal while considering the stay petition where it is held that; "3. We find the activities ....
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.... purposes; (i) Office verification, (ii) residence verification, (iii) telephone verification of office and residence (iv) defaulter check that the bank shall provide such information and assistance as in the opinion of the bank, is necessary to enable the service provider to render the various services under the agreement, that the service provider shall provide to the bank a report of its field investigation in the manner and within the time frame as is prescribed in the schedule II, in the format prescribed by the Bank from time to time. Further they submitted that clause (D) of the agreement clearly says that the services are provided by the appellant to bank on principle-to-principle basis. It is not that the services are provided by t....
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.... within the tax net up to 16.05.2008." 6. The Learned Authorized Representative (AR) reiterated the finding in the impugned order. 7. Heard both sides. As regarding classification, we find that based on the agreements with M/s. Kotak Mahindra Bank and ICICI Bank it is alleged that the services rendered by the appellant fall under 'BAS'. However we find that the services rendered by the appellant do not fall under the BAS as rightly pointed out by the appellant they do not fall under any of the category listed under BAS but relate to Banking and financial services. Hence to this extent the demand is set aside. The next issue is regarding the services rendered by the appellant to ICICI bank in relation to collection of recovery of chequ....