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TMI Blog2012 (3) TMI 284X X X X Extracts X X X X X X X X Extracts X X X X ..... ises thus have not acted as a commission agent, hence are doing business with these NBFC's on principal to principal basis and sharing their profits. Therefore, the applicants are not rendering any service under the category of "Business Auxiliary Services"- Processing fee - applicants are collecting money on behalf of the company who issues IPOs and deposit in a designated bank assigned by the IPO issuing company and banks shared interest earned by them with the applicants on money deposited - Revenue considered this activity of promotion of the business of the Banks and liable to pay service tax under the category of "Business Auxiliary Services" - Held that :- The amount of interest income which the bank shares with the applicant is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firmed on the activity undertaken by the applicants where they are financing to their clients through Non Banking Finance Company (NBFC, in short) which are sister concerns of the applicants and share the income of interest earned by these NBFC on revenue sharing basis. There was a MOU between the applicants and the NBFC in terms of which NBFC were to arrange finance for the applicant's clients. As per the above said MOU, the applicants and the NBFC company were to share the income earned from this activity after deducting the expenses. The department is of the view that the said activity is covered under the "Business Auxiliary Services" as the applicants are promoting the business of these NBFC's by way of performing the activity of intro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oting or marketing of any of the services provided by the bank. Therefore, the applicants are not liable to pay service tax in this category also and made out a case for 100% waiver of pre-deposit. 3.3 Recovery of Common expenses - These expenses recovered by the applicants from the co-user of the premises on actual basis. As the applicants are doing these expenses on behalf of the co-user and recovering the same from the co-user as per their usage. The department is of the view that the recovery of the expenses are covered under the category of infrastructural support service as the applicants are providing infrastructure support service to the co-user. On going through the records, we find that these activities is also not covered und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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