2018 (3) TMI 1283 - AT - Service Tax

Business Auxiliary Service - booking of luggage on behalf of the bus owners - Held that - Since the bus owners are clients of the appellant, on whose behalf booking of luggage was made, the same should fall under the taxable category of Business Auxiliary Service. With regard to the submission of the appellant that the service tax should be levied on the actual commission earned by the appellant, that neither there is any agreement, of any correspondence exchanged between the appellant and the bus owners providing for the actual commission payable to the appellant for providing such service. Thus, in absence of any documentary evidence, the plea raised by the appellant cannot be accepted. Appeal dismissed - decided against appellant.

Summary

Issues:
1. Taxability of booking luggage on behalf of bus owners under "Business Auxiliary Service" category.
2. Specific mention of taxable clause in the show cause notice.
3. Service tax liability on commission earned from booking luggage.

Analysis:
1. The appeal challenged the order upholding the taxability of booking luggage for bus owners as a taxable service under "Business Auxiliary Service." The appellant argued that the show cause notice did not specify the taxable clause, contending that without this specificity, the demand cannot be upheld. The appellant further claimed that only the commission earned from booking luggage should be subject to service tax, not the entire amount collected from customers and paid to bus owners.

2. The Revenue supported the Commissioner's findings, emphasizing that the appellant's activities fell within the ambit of "Business Auxiliary Service." The Tribunal examined the case records and noted that since the appellant booked luggage on behalf of bus owners, who were its clients, the service naturally fell under the taxable category of "Business Auxiliary Service." The adjudication order specifically categorized the service under sub-clause (vi) of the definition of "Business Auxiliary Service." The Tribunal rejected the appellant's argument regarding the lack of a specific clause in the show cause notice, as the service clearly fell within the mentioned sub-clause.

3. The Tribunal dismissed the appellant's plea to levy service tax solely on the actual commission earned, citing the absence of any documented agreement or correspondence between the appellant and bus owners regarding the commission payable for the service. Without such evidence, the Tribunal could not accept the appellant's argument. Consequently, the Tribunal found no fault in the impugned order and dismissed the appeal, upholding the service tax liability on the booking of luggage for bus owners under the specified clause of "Business Auxiliary Service."

Overall, the Tribunal's decision affirmed the taxability of the service provided by the appellant under the "Business Auxiliary Service" category, specifically under sub-clause (vi), and rejected the appellant's contentions regarding the show cause notice and the computation of service tax liability based on actual commission earned.