2013 (12) TMI 375 - AT - Service Tax

Waiver of pre deposit - Business Auxiliary Services - Facility for passport and visa related work to individuals - Whether service tax liability would arise on the assistance provided by visa facilitators, to individuals directly, for processing of visa applications - Held that - Visa facilitators, merely facilitate the procurement of visa and directly assist individuals who intend to travel abroad, to complete the immigration formalities - service tax is leviable on any service provided other than assistance directly to individuals for obtaining visa, falling under the description of any taxable service, as classifiable under the appropriate heading - Service rendered by the appellant does not fall under any category of services leviable to service tax - Therefore, decided in favour of assessee.

Summary

Issues:
Service tax liability on the appellant under Business Auxiliary Services for providing facility for passport and visa related work to individuals.

Analysis:
The judgment pertains to an application filed for the waiver of pre-deposit of a specific amount along with interest and penalties under various sections. The issue at hand involves the service tax liability on the appellant under the category of Business Auxiliary Services for providing assistance in visa and passport related work to individuals. The judges noted that the issue was narrow and could be disposed of promptly. They considered a Board Circular dated 20-4-2011, which clarified that service tax liability does not arise on assistance provided by visa facilitators directly to individuals for processing visa applications. The Circular highlighted that such assistance does not fall under the scope of supply of manpower service or business auxiliary service if the visa applicant pays the service charge on their own. Visa facilitators are seen as assisting individuals in completing immigration formalities and collecting statutory charges for remittance to authorities, along with service charges for themselves. The service provided by visa facilitators directly to individuals to obtain a visa does not fall under taxable services under the Finance Act, 1994. The judgment relied on the Board's stand that the service rendered by the appellant does not fall under any category of services liable to service tax, leading to the setting aside of the impugned order and allowing the appeal.

This comprehensive analysis of the judgment showcases the key aspects of the legal decision, including the specific issue, the arguments presented, the relevant legal framework, and the final decision reached by the tribunal.