2019 (2) TMI 763 - AT - Service Tax

Evasion of service tax - incorrect calculation of service tax - Medical Transcription Training Services under Commercial Training Coaching Services - Registrar and Transfer services for NCDEX - courier charges under banking and other financial services - Registrar Transfer Services of the commodities of NCDEX. Medical Transcription Training Services under Commercial Training Coaching Services - Held that - Since the appellant has not contested this before us the service tax liability confirmed under this head along with interest is upheld - demand upheld. Courier charges under Banking and other Financial Services - Held that - This amount is charged by the appellant as Courier charge are in fact in nature of reimbursement of expenses incurred. In our view this cost will not get covered for taxing under the category of Banking Other Financial Services as per the law settled by Hon ble Apex Court in the case of Intercontinental Consultants Technocrats Pvt. Ltd. 2018 (3) TMI 357 - SUPREME COURT OF INDIA - demand set aside. Banking and other financial services - Registrar and Transfer services for NCDEX - Held that - This amount is also not taxable under Banking Other Financial Services ; as per the agreement dated 07.11.2003 (page 15 onwards) appellant has been appointed as Registrar and Transfer Agents for the commodities traded on NCDEX and it cannot be considered as depository services - demand set aside. Registrar Transfer Services of the commodities of NCDEX - Held that - The activity undertaken by the appellant for Registrar Transfer Services of the commodities of NCDEX is not included in the definition of Banking Other Financial Services - demand set aside. Appeal allowed in part.

Summary

Issues:
Service tax liability under various heads - Medical Transcription Training Services, courier charges under Banking and other Financial Services, Registrar and Transfer services for NCDEX.

Analysis:
1. Medical Transcription Training Services: The appellant did not contest the service tax liability under this head, and therefore, the liability confirmed along with interest was upheld by the tribunal.

2. Courier Charges under Banking and other Financial Services: The tribunal examined the nature of courier charges and found that they were for transmitting documents to clients, which were reimbursable expenses. Citing legal precedents and the judgment of the Hon'ble Apex Court, the tribunal held that these charges were not taxable under Banking and other Financial Services. The tribunal also referred to a similar case from the Bangalore Bench to support their decision. Consequently, the demands on courier charges were set aside.

3. Registrar and Transfer services for NCDEX: The tribunal analyzed the agreement between the appellant and NCDEX and concluded that the services provided did not fall under the definition of Banking and other Financial Services as per the relevant section of the Finance Act, 1994. Therefore, the tribunal held that the amount for Registrar and Transfer services was not liable to service tax.

4. Limitation: The tribunal did not provide specific findings on the limitation argued by both sides, as the major demands of the appellant were disposed of on merits.

5. Final Decision: The tribunal upheld the demands raised under Medical Transcription Services, set aside the demands on courier charges and Registrar and Transfer services for NCDEX. Consequently, the interest and penalties associated with the latter two amounts were also set aside. The appeal was disposed of accordingly.