TaxTMI 
TaxTMI 
2026 (8) TMI 1312
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.... PCL were affiliated to number or clubs, hotels and resorts in the country. PCL were operating various holiday options such, Relax Holiday, Divine Holiday and Delight Holiday etc. or a fixed tenure ranging from 3.3 years (39 months) to 10 years. Room Nights were provided at discounted prices against receipt of advance payment and open time fixed amount of administrative charges. The members who were enrolled for the holiday options were offered, inter alia, various add on benefits such as Medi-claims, Accidental Death Insurance and Life Insurance coverage and personalized discount card, which identified the applicants, as well as allowed them to avail discounts in purchase of goods and provision of services at their own or tied-up outlets including restaurants against cash payments etc. Moreover, the members were also offered to exchange the room nights obtained under Holiday options for PCL's Club membership; or surrender non-utilized Room Nights against compensation (i.e. payment of surrender value of Room Nights at prevailing rate). 2.1 Pursuant to an intelligence received and developed by DGCEI, Mumbai Zonal Unit that PCL engaged a network of Commission agents for promotion ....
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....nd also Head of Treasury - management for surplus funds of the company (i.e. PCL). But, he was not a signatory in any Bank Accounts or for operating funds of PCL with any financial institutions. b. That M/s. PCL were currently having 53 Branch offices at many places across the country. Each Branch office was headed by a Branchin-Charge, who reported to operation Command Centre (OCC) Manager, and who, in turn, reported to OCC Head, Ms.Soniya Gupte. Ms. Soniya Gupte reported to him, and he reported to Mr.Sudhir Moravekar, Chairman of PCL. Mr. Sudhir Moravekar was also chairman of the Panoramic Group of companies. They were currently having 08 OCC Managers. Out of them, 03 OCC Managers were marketing from Mumbai and rest 05 OCC Managers were operating from outside Mumbai. 2.5 The Marketing Persons were appointed as Sales Representative (SR) and thereafter promoted once in a year, subject to fulfilling their targets of collection of Holiday option payment specified by M/s. PCL. Besides this, the Commission agents were also given, (i) Gap Benefit, i.e. if there existed any gap in the chain from the rank of SR.to DM/COM, Gap Benefit of Over-riding Commission would be....
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....rovided in relation to activities falling under BAS. 2. The service was provided (or to be provided) by any person. 3. The service was provided to any person. With effect from 01.05.2006, taxable service included any taxable service provided or to be provided by any unincorporated association or body of persons to a member thereof, for cash, deferred payment or any other valuation consideration, as per Explanation inserted by the Finance Act, 2006, to section 65 of the Finance Act, 1994. 2.8 Further, as per Section 65(19) of the Finance Act, 1994, BAS meant any service in relation to, - (i) promotion or marketing or sale of goods produced or provided by or belonging to the client; or (ii) promotion or marketing of service provided by the client. (iii) any customer care service provided on behalf of the client; or (v), (vi) ............ (V) a service incidental or auxiliary to any activity specified in subclauses (i) to (vi), such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, publ....
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....oliday options, and provided them information about the Holiday options, caused the sale, and collected payments along with applications for obtaining services/benefits under the Holiday options, and deposited the same with the designated Branch offices of PCL. Thus, the appellant appears to have provided services to the client- PCL, as a Commission agent, in promotion, marketing and causing provision of services/benefits under various Holiday options being offered and operated by PCL, in consideration of Commissions received from them. Thus, the services provided by the appellant, appears to be covered under the taxable category of BAS as defined under the provisions of section 65(105)(zzb) read with section 65(19) of the Finance Act, 1994 and the appellant appears to be liable for payment of Service Tax. But, the appellant had neither got himself/herself registered for payment of Service Tax nor was he/she discharging the statutory liability of payment of Service Tax on the said Commission. The appellant also appears to have contravened various statutory provisions of the Finance Act, 1994 read with the STR, 1994 and hence the appellant appears to be liable for penalty. The appel....
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....e jurisdictional Superintendent of Central Excise for payment of Service Tax and to file six monthly/half yearly (ST-3) Returns. Thus, the appellant appears to have suppressed the value of taxable services with intent to evade payment of Service Tax. (a) The appellants had also failed to maintain records and pay Service Tax. Thus, it appears that the appellant has contravened various statutory provisions of the Finance Act, 1994 read with the STR, 1994. (b) There was no confusion or ambiguity in law about the taxability of the services provided by a Commission agent during the relevant period. Moreover, the appellant had neither informed the Proper Officer of the Service Tax Department nor the appellant sought any clarification from the department on this matter. (c) Ignorance of laws appears to be no excuse in tax laws. Ignorantia juris non excusat or ignorantia legis neminem excusat (Latin for "ignorance of the law does not excuse" or "ignorance of the law excuses no one") is a legal principle holding that a person who is unaware of the law may not escape liability for violating that law merely because he or she was unaware of its content. The doctrine ....