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TMI Blog2015 (1) TMI 224X X X X Extracts X X X X X X X X Extracts X X X X ..... rovider of online information and data base access or retrieval or both. The respondents are not disputing the taxability of their service. The only issue is whether the registration fee charged from their clients are to be added to the value of taxable service on which the respondents are liable to pay Service Tax. The registration fee is not refundable as such. The registration fee will be adjusted to the first purchase made by the clients in case no purchase is made the registration fee is not to be refunded. In view of this, the registration fee is not refundable as such, hence is required to be added to the gross value of taxable service on which the respondents are liable to pay Service Tax. - respondent has not disclosed this fact re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not declared in the ST-3 returns filed by them and that the registration fee formed part of the correct value of the taxable service. Therefore a show cause notice dated 10-6-2004 for the period July, 2001 to July, 2003 was issued to the respondent demanding Service Tax amount of ₹ 32,00,857/- interest and also for imposition of penalties on the ground that the registration fees collected was not declared in the ST-3 returns filed by the respondent. The registration fee formed part of correct value of the taxable service in terms of the provisions of Section 67 of the Finance Act, 1994. The adjudicating authority confirmed the demand with interest and also imposed penalties. 4. The respondent filed appeal before the Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held in favour of the respondents are regularly submitting ST-3 returns and were accepted and paid Service Tax regularly and the Revenue has not raised any objection. 8. We find that the respondents were paying Service Tax as provider of online information and data base access or retrieval or both. The respondents are not disputing the taxability of their service. The only issue is whether the registration fee charged from their clients are to be added to the value of taxable service on which the respondents are liable to pay Service Tax. The registration fee is not refundable as such. The registration fee will be adjusted to the first purchase made by the clients in case no purchase is made the registration fee is not to be refunded. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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