TaxTMI 
TaxTMI 
2026 (5) TMI 801
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....rsonal loan applications in rural and remote areas of Rajasthan. The appellant worked in village and remote Government schools for facilitating banking services relating to salaried Government teachers working in such rural areas. 2. On the basis of third-party information received from Income Tax Department and Form 26AS, it was alleged that the appellant received commission income amounting to Rs.1,91,73,032/- during FY 2014-15 to 2017-18 but failed to discharge service tax liability. Accordingly, Show Cause Notice dated 06.11.2019 was issued proposing demand of service tax amounting to Rs.27,97,866/- along with interest and penalties under Sections 77 and 78 of the Finance Act, 1994. It is alleged that the appellant was providing taxa....
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.... working as Business Facilitator for HDFC Bank Ltd. in rural and remote areas for facilitating banking services to Government teachers working in village Government schools and facilitating their clients in obtaining finance for purchase of vehicles and motor bikes. The appellant was operating in rural and remote village areas and facilitating banking outreach in such areas by visiting remote villages and schools for sourcing and facilitating loan applications and related banking documentation. Thus, the activity undertaken by the appellant was in the nature of banking facilitation services in rural areas and therefore the services rendered by the appellant are exempted from levy of service tax under Entry No.29(g) of Notification No.25/201....
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....ppellant regarding exemption under Entry No.29(g) of Notification No.25/2012-ST and entitlement of cumtax benefit. The impugned Order-in-Appeal does not contain any proper findings or discussion on the applicability of the said exemption notification and cum-tax benefit claimed by the appellant. Therefore, the impugned order is non-speaking in nature and liable to be set aside. 10. That the orders passed by both the lower authorities are only on presumption and assumptions. Without proper examination and verification of the Income Tax records and Form 26AS, the department has confirmed the demand, which is against the provisions of law. Further, the Show Cause Notice itself does not specifically mention or classify the exact taxable serv....
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....representative submitted as under: "The appellant in his appeal memo himself admitted that he was working as a Direct selling Agents and received commission or brokerage from HDFC Bank Ltd in respect of Banking and Financial Institutions and facilitating their clients in fetching the finance for the purchase of vehicle. The service provided by the appellant is covered under the service tax." 14. Heard the parties and considered the submissions; 15. The sole issue raised before us in this case is whether the demand can be raised against the appellant on the basis of Form 26A received from the income tax department alleging that the appellant is providing taxable service. 16. We find that the appellant is engaged as business....