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TMI Blog2011 (11) TMI 410X X X X Extracts X X X X X X X X Extracts X X X X ..... ing and other financial service and they should be given the benefit of this notification - Kerala High Court in the case of C.C.E. v. Car World Autoline - (2009 (6) TMI 423 - KERALA HIGH COURT), where the Court held that the exemption is available only to an assesse providing banking and financial services - Held that: the demand in this case can be sustained only to the extent covered in the normal period of limitation - Appeal is partly allowed - ST/1477/2010 - ST/601/2011(PB) - Dated:- 22-11-2011 - S/Shri D.N. Panda, Mathew John, JJ. REPRESENTED BY : Shri Brijesh C. Verma, Rep., for the Appellant. S/Shri Sumit Kumar and Amrish Jain, SDRs, for the Respondent. [Order per : Mathew John, Member (T)]. The Appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii) Promotion or marketing of service provided by the client; or (iii) Any customer care service provided on behalf of the client; or (iv) Procurement of goods of services, which are inputs for the client; or (v) Production of goods on behalf of the client; or (vi) Provision of service on behalf of the client; or (vii) A service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi) such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, public relation services, management or supervision and includes services as a commission agent but does not incl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e hands of the insurance agent. There is also an argument regarding amounts paid to the person taking loan as incentive for taking the loan through them which amounts are called as subventions. Though these issues were raised before the adjudicating authority, he did not examine these issues. These issues have not been examined by the Commissioner (Appeals) either. 6. He also submits that Commissioner (Appeal) did not appreciate the following grounds properly,- (i) The demand was time barred; (ii) In identical situation the Tribunal had dropped demand in many cases like that of, (a) Bridgestone Financial Services v. CST - 2007 (8) S.T.R. 505. (b) Chamundeswari Associates v. C.C.E. - 2008 (12) S.T.R. 623. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ). 8. Now the question to be examined is whether Notification No. 14/2004-S.T. or Notification No. 25/2004-S.T., provide any exemption to the tax liability of the Appellant. These claims are not seen in the Appeal Memo. But this case was argued after the case in City Motors and Financial Services [2012 (25) S.T.R. 449 (Tri. - Del.)] was argued and the Counsel in this case adopted a the arguments raised by the counsel in that case. 9. Notification No. 14/2004-S.T., dated 10-9-2004 reads as under : In exercise of the powers conferred by sub-section (1) of Section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts taxable service provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of providing any service of the category specified at (a) or (b) in the opening paragraph of the above notification. The Appellant is not providing any service to the loan seekers but are providing service to the bank. There is no contract between the loan seekers and the Appellant. Contract is between Appellant and the Banks. Payment for the service is made by the Appellant. So the activity does not fall under item (c). So the Appellant is not eligible for exemption under the above notification. 11. Now the scope of Notification No. 25/2004-S.T., dated 10-9-2004 is to be examined. This notification reads as under : In exercise of the powers conferred by sub-section (1) of Section 93 of the Finance Act, 1994 (32 of 1994), the Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty, bill discounting facility, safe deposit locker, safe vaults; operation of bank accounts; (g) services provided to any person by a tour operator, other than a tour operator engaged in the business of operating tours in a tourist vehicle covered by a permit granted under the Motor Vehicles Act, 1988 or rules made thereunder, in relation to a tour; and (h) service provided to a policy holder, by an insurer carrying on life insurance business in relation to the risk cover in life insurance, from the whole of service tax leviable thereon under Section 66 of the said Act, which is received by the service provider prior to the 10th day of September, 2004. 12. This notification has two peculiarities as compared to usual exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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