9911796707
TMI Blog2013 (12) TMI 262X X X X Extracts X X X X X X X X Extracts X X X X ..... ding Business Auxiliary Service with effect from 03.12.2004. They did not file any Service Tax Return during the period 12/2004 to 3/2007. Respondents are arranging loans for the customers from various financial institutions like LIC Housing, IDBI. Bank and HDFC bank and promoting and marketing the services of these financial institutions Department felt that this activity of the Respondents is covered under Business Auxiliary Service as defined under Section 65(19) of the Finance Act. Accordingly a Show Cause Notice dated 14.08.2008 was issued to the Respondents demanding Service Tax with interest and also proposing penalties on them. This Show Cause Notice was adjudicated by the Deputy Commissioner vide order in Original No.66/2010 dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 25/2004 both dated 10.09.2004. Since they were providing services on behalf of their client, they are eligible for exemption under these Notifications. 5. After hearing the both sides, we find that there is no dispute that activity of the Respondents is under Business Auxiliary Service. Only issues involved in this case is whether Respondents are promoting or marketing the services of financial institution or providing services on behalf of the client and are eligible for exemption under Notification 14/2004 and 25/2004 dated 10.09.2004. 6. For sake of convenience, we reproduce below provisions of Business Auxiliary Service as under:- "Business Auxiliary Services" means any service in relation to,- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers 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 that portion of the value of following taxable services, namely- (a) Services provided to a customer, by a commissioning and installation agency in relation to erection; (b) Services provided to any person, by a sub-broker in connection with the sale and purchase of securities listed on a recognised stock exchange; (c) Services provided to any person by a multisystem operator in relation to cable services; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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. Notification 14/2004 dated 10.09.2004. "In exercise of the power conferred by sub-section (1) of Section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is the public interest so to do, hereby ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y corporate established by or under any law, Unless such factory, partnership firm, society, co-operative society, corporation or body corporate, as the case may be, provides any business auxiliary service in respect of any activity specified in (a) to (b) above in relation to agriculture, printing, textile processing or education. 7. We find that activity of the Respondents is arranging loans from various financial institutions like LIC Housing, IDBI Bank and HDFC Bank. They are procuring customers for these institutions and get the loan sanctioned to these customers and in lieu of this service they receive the Commission from these institutions and this way they are promoting or marketing the services of these institution a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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