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TMI Blog2013 (12) TMI 262X X X X Extracts X X X X X X X X Extracts X X X X ..... s service they receive the Commission from these institutions and this way they are promoting or marketing the services of these institution and are squarely covered under clause (ii) of definition of Business Auxiliary Service. Loans are sanctioned by the Financial Institutions only. It is not the case of Respondents that they are giving the loan amount to the customers and getting the same reimbursed from these Banks. Services provided by the Respondents can not be said to have been provided on behalf of the client and accordingly they also become ineligible for exemption under Notification 14/2004 and 25/2004 dated 10.09.2004 - Service tax demand confirmed - Decided in favor of Revenue. - ST/1576/2010 - Final Order No. 57422/2013(PB) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner (Appeal), who vide impugned order has reduced the demand to Rs.26,862/- and upheld the penalty under Section 76 and 77 of the Finance Act but dropped the penalty under Section 78 of the Act. Revenue has challenged the impugned order in the present appeal. Respondent also filed cross objection to the appeal. 3. Ld. DR for Revenue submits that Show Cause Notice was issued to the Respondents demanding service tax from them under Business Auxiliary Service as they are promoting and marketing service of LIC Housing/HDFC Bank etc., but the Commissioner (Appeal) has held that the Respondents are providing Business Auxiliary Service on behalf of the client and are therefore eligible for exemption under Notification 25/2004 dated 10.09. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iv) Procurement of goods services, which are inputs for the client; or Explanation:- For the removal of doubt, it is hereby declared that for the purposes of this sub-clause, "inputs" means all goods or services intended for use by the client: (v) Production or processing of goods for, or on behalf of, the client; (vi) Provision of service of behalf of the client; or (vii) A service incidental or auxiliary to any activity specified in sub-clause (i) to (iv), 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ution including a non-banking financial company, in relation to banking and other financial services; (f) Service provided to a customer by a banking company or a financial institution including a non-banking financial company in relation to financial services namely lending; issue of pay order, demand draft, cheque, letter of credit and bill of exchange; providing bank guarantee, over draft facility, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India; (v) A co-operative society established by or under any law; (vi) A corporation established by or under any law; or (vii) A body 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 procu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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