9911796707
TMI Blog2013 (9) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... ady collected by the bank in their various branches are electronically processed by the appellant - the appellant is undertaking back-office operations - bulk of data processing is done for the bank's branches situated abroad – activity undertaken by the appellant would amount to export of service and on that account also no service tax would be payable by the appellant. - stay granted. - ST/85485/2013 - S/399/13/CSTB/C-I - Dated:- 1-3-2013 - Mr.P.R.Chandrasekharan And Mr.Anil Choudhary, JJ. For the Appellant :Mr. A.R.Krishnan, CA For the Respondent : Mr. P.N.Das, Commissioner (AR) Per: P.R.Chandrasekharan The appeal and stay application are directed against Order-in-Original no. 95/NG/COMMR/Th-II/2012 dated 31/10/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service tax demand under section 73 of the Finance Act, 1994 along with interest thereon apart from proposing penalties under sections 76, 77 and 78 ibid. 2.1 The notice was adjudicated vide the impugned order and the adjudicating authority came to the conclusion that the appellant's responsibility included collection of documents from the client's customers and, therefore, the nature of the service provided by the appellant is not restricted to computerized data processing and is liable to service tax as the activity undertaken is incidental or ancillary to the customer care service provided by their client to their clients. Accordingly, he confirmed the demand along with interest and also imposed penalties under sections 76, 77 and 78. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vity undertaken by the appellant, which is nothing but computerized data processing cannot come within the scope of BAS and hence the entire demand is unsustainable. 3.2 The learned consultant further points out that w.e.f 01/05/2006 when Business Support Service' was brought under tax net, accounting and processing of transactions and other transaction processing have been specifically included under Business Support Services' (BSS) and explanation to BAS has also been modified so as to exclude computerized data processing services from the said explanation for the reason that the same is included under BSS. 3.3 The learned Consultant also submits that in the instant case demand is restricted to the period from July 2003 to March, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is, processing of the transactions of their client electronically. In other words, they were undertaking computerized data processing for their client using the computer systems of the client and the clients are located not only in India but all over the world. It is also a fact that the appellant is not interacting with the bank's customers for collection of any data. The data already collected by the bank in their various branches are electronically processed by the appellant. In other words, the appellant is undertaking back-office operations for the client. The Citi Bank group has entrusted the processing of banking transactions electronically to the appellant. Since computerized data processing is specifically excluded from the scope o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
