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TMI Blog2014 (6) TMI 659X X X X Extracts X X X X X X X X Extracts X X X X ..... activities to be carried out by the Appellants that it leaves no scope for any ambiguity whatsoever, leave alone the ambiguity even remotely amenable to the interpretation that their services did not fall under the category of promotion and marketing and/or that they were providing services to the potential loan seekers on behalf of Ms. TFL and not to M/s. TFL. Levy of penalty - Held that:- Obviously, the Appellants deliberately chose not to pay Service Tax and then sought to justify their action by trying to put fourth an interpretation which is so grossly untenable and devoid of any basis that no reasonable person even with the fullest sympathy with the Appellants would buy their contention. They did not even take Service Tax registr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these were covered under the scope of provision of Service on behalf of clients which was exempt under Notifications Nos. 14/2004-ST 25/2004-ST both dated 10.09.2004. (iii) As the matter relates to interpretation, penalty is not justified. 3. The learned DR argued that the agreement between M/s. TFL and the Appellants clearly shows that they provided services of promotion and marketing to M/s. TFL and there was no ambiguity. Therefore the Appellants deliberately evaded Service Tax. 4. We have considered the submissions of both sides. 5. The agreement between the M/s. TFL and the Appellant clearly provides that the Appellant will inter alia undertake the following activities:- (a) Explore and promote ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the scope of provision of services on behalf of the client . 6. Exemption Notifications No. 14/2004-ST 25/2004-ST both dated 10.09.2004 are reproduced below for convenience:- 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 provided to a client by a commercial concern in relation to the business auxiliary service, insofar as it relates to, - (a) procurement of goods or services, which are inputs for the client; (b) production of goods on behalf of the client; (c) provision of service on behalf o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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; (d) services provided to a client by a commercial concern in relation to the following business auxiliary services namely, - (i) procurement of goods or services, which are inputs for the client; (ii) production of goods on behalf of the client; (iii) provision of service on behalf of the client; or (iv) a service incidental or auxiliary to any activity specified in (i) to (iii) above; (e) service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contention that it being a matter of interpretation, they are not liable to penalty, it is seen that the agreement between M/s. TFL and the Appellants is so clearly worded regardings the activities to be carried out by the Appellants that it leaves no scope for any ambiguity whatsoever, leave alone the ambiguity even remotely amenable to the interpretation that their services did not fall under the category of promotion and marketing and/or that they were providing services to the potential loan seekers on behalf of Ms. TFL and not to M/s. TFL. Obviously, the Appellants deliberately chose not to pay Service Tax and then sought to justify their action by trying to put fourth an interpretation which is so grossly untenable and devoid of any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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