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2017 (12) TMI 14 - AT - Service TaxBusiness auxiliary services (BAS) - activity of intermediary between Bank and their prospective clients who required a loan for the purchase of a motor vehicle - Held that - the issue stands covered by the decision of the Tribunal in the case of Car World Autoline Vs. Commissioner of Central Excise 2016 (10) TMI 460 - CESTAT BANGALORE , where it was held that the appellant is entitled to the benefit of N/N. 25/2004 and eligible for both (d) as well as (e) Clause and they were not liable to pay service tax prior to 10.09.2004 - demand set aside - appeal allowed - decided in favor of appellant.
Issues:
1. Service tax demand under Business Auxiliary Service for the period August 2003 to September 2004. 2. Imposition of penalties under sections 76 and 78 of the Finance Act, 1994. 3. Revision of order by the Commissioner of Central Excise denying exemption Notification benefit. Analysis: 1. The appellant, engaged in providing financial services to a bank, received a show cause notice in 2005 for service tax demand under Business Auxiliary Service. The original authority confirmed a demand for a specific period and imposed penalties. An appeal against the penalty was rejected by the Commissioner (Appeals). Subsequently, the Commissioner of Central Excise issued a notice to revise the order, resulting in a higher service tax demand. The appellant challenged this revision order in the present appeal. 2. The appellant's counsel argued that Notification No. 25/2004 exempted services rendered before a certain date, a point supported by a Tribunal decision in a similar case. Relying on this precedent, the Tribunal found the demand unsustainable and set aside the impugned order, allowing the appeal with any consequential relief. This judgment highlights the importance of legal precedents and the interpretation of relevant notifications in tax matters. It also underscores the significance of challenging adverse decisions through the appropriate legal channels to seek relief and justice.
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