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TMI Blog2013 (2) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... h the Agreements, the appellant was referred to as "Direct Sales Association/Agent". After a study of the functions assigned to the appellant under the Agreements, the name of the appellant to be befitting in the sense that the appellant was, in fact, selling products of the Bank. The products of the Banks were nothing but “Banking services”. Therefore, ex facie , the appellant was marketing the services provided by their clients, viz. banks. Therefore, their activities squarely fell within the ambit of "promotion or marketing of services provided by client" which function was a part of the definition of BAS since 1.7.2003. In favour of revenue Extended period of limitation - Penalty - Section 73 (1) - Section 80 - Extra-ordinary Taxpaye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t so paid stands appropriated towards the above demand. The case of the appellant, which is based on the terms and conditions of their Agreements with ICCI Bank Ltd. and HDFC Bank Ltd., is that they were only providing a service on behalf of the banks (clients) to the latter's customers and hence the activity was not taxable prior to 10.9.2004, the date on which "Provision of Service on behalf of the client" was enacted as a part of the definition of BAS under Section 65 (19) of the Act. Per contra, the case of the Revenue is that the appellant was promoting/marketing the services of the Banks and hence the activity was squarely covered by clause (ii) (promotion or marketing of service provided by the client) of Section 65 (19) ibid. The cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. 3. We have perused the records and considered the submissions. The terms and conditions of the relevant Agreements show that the appellant was, in fact, using their infrastructure, staff and expertise to market products of the Banks. In both the Agreements, the appellant was referred to as "Direct Sales Association/Agent". After a study of the functions assigned to the appellant under the Agreements, we have found this name of the appellant to be befitting in the sense that the appellant was, in fact, selling products of the Bank. The products of the Banks were nothing but Banking services . Therefore, ex facie , the appellant was marketing the services provided by their clients, viz. banks. In other words, their activities squarely f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms to have believed, on the basis of the terms and conditions of the Agreements, that their liability to pay service under BAS arose under clause (vi) of the definition of this service. It is not in dispute that they got themselves registered with the department and paid service tax under BAS from 10.9.2004, the date on which clause (vi) became a part of the definition. It is also on record that the appellant invoked the Extra-ordinary Taxpayer-Friendly Scheme introduced in September 2004. They invoked this scheme in October 2004 with a view to avoid penal liability. In the totality of these circumstances there appears to be a valid ground for the appellant to claim the benefit of Section 80 ibid, where under, if reasonable cause for non- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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