TaxTMI 
TaxTMI 
2026 (6) TMI 110
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.... of the appellants' records, the department observed that the appellants have provided corporate guarantee in favor of their associated enterprises M/s Vipul Limited. Three Show Cause notices dated 01.09.2015, 08.04.2016 and 01.06.2017 were issued proposing levy of service tax of Rs. 2,25,96,441/- during the period 2009-10 to 2015-16, proposals made in all the SCN's were confirmed by the Order in Original dated 28.03.2018. On an appeal filed by the appellants, the Impugned Order dated 28.09.2018 was passed by Commissioner (Appeals) remanding the matter to the Adjudicating authority for quantification of the duty. 2. Ms. Krati Singh, Learned Counsel for the appellant, submits that the issue is no longer res integra having been held in a n....
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....t has wrongly invoked the provisions for valuation; it is not correct on the part of the department to calculate the service tax at the arbitrary rate of 3.5 percent on the amount of corporate guarantee. W.e.f. 01.07.2012, as defined under Section 65B (44), consideration is required to be established for the transaction, so as to be covered under the ambit of taxable service. She relies on HUAWEI Telecommunication India Pvt Ltd, 2025 (5) TMI 155-CESTAT Chandigarh. She further submits that the extended period cannot be invoked in the Show Cause Notice dated 01.09.2015 as there is no suppression etc. with the intent to evade payment of duty; all the facts were in the knowledge of the department; the Show Cause Notices were issued on the basis....
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....39;corporate guarantee' issued by respondent on behalf of their subsidiary companies is concerned. 9. The reliance placed by Learned Authorized Representative on the 'non-monetary benefits' which may, if at all, be of relevance for determination of assessable value under section 67 of Finance Act, 1994 does not extend to ascertainment of 'service' as defined in section 65B(44) of Finance Act, 1994, 'Consideration' is the recompense for the 'contractual undertaking that authorizes levy while 'assessable value' is a determination for computing the measure of the levy and the latter must follow the former. 6. We further find that this Bench held in the case of G 4 S Cash Solutions India Pvt L....
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.... until there is an element of 'consideration'... Now the definition of service in Section 65 B (44) of Finance Act, 1944 becomes relevant reads as follows: Service means 'any activity carried out by a person for another for consideration and includes declared service but not includes the services listed in the negative list under section 66B of the Act'. 9. Reverting to the facts of the present case, we observe that the Show Cause Notice itself recites that the appellant has given the corporate guarantee on behalf of their group companies but has not charged any commission or interest or fees for providing the said corporate guarantee. Same is also apparent from the letter given by the Syndicate Bank from w....