9911796707
TMI Blog2015 (11) TMI 977X X X X Extracts X X X X X X X X Extracts X X X X ..... observed that appellant was rendering Business Auxiliary Service(BAS) to various customers and were not paying the tax. This was on the basis that appellant has received certain amounts under the heads discounts, healthcare, receipts and self-funded schemes. In all these cases, they have not paid service tax on the consideration received. Accordingly proceedings were initiated and after completion of due process, demand for service tax of Rs. 2,15,63,970/- with interest was confirmed for the period from August 2002 to March 2006. An amount of Rs. 16,29,562/- was demanded towards BAS from August 2002 to March 2006. 2. There is no dispute about confirmation of demand for service tax on Insurance Auxiliary Service and the entire amount of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant was not liable to pay tax at all. We find this submission to be valid since the service provided to insurer or policy holder was only liable to tax prior to 01/05/2006. 5.1. The nex demand has arisen on the ground that amounts received as healthcare receipts/self-funded schemes are liable to tax as BAS. The healthcare receipts is the amount received for service provided by the appellants to corporate clients such as advise, monitoring, implementing, verifying claims received from the hospitals and submitting various reports to the client. This is the service which is limited to the healthcare of the employees of corporate clients. The second item which is called as self-funded schemes by the appellants is the service rendered by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om hospitals and arranging payments/remittances etc. Further the perusal of the agreement entered in to with Yeshaswini Co-operative Farmers Health Care Scheme (Yeshaswini) makes it clear that according to which M/s.Health, inter alia, are required to maintain data to beneficiaries, assist to issue identity cards, identify networking hospitals, process the request of hospitals for pre-authentication, proposed course of treatment, liaison with hospitals for smooth implementation of scheme, verify claims received from hospitals and arrange payments/remittances etc. Therefore it is the contention of the department that the services as such would fall within the ambit of Business Auxiliary Service as defined under Section 65(19) of the Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ka. This is a self-funded scheme and the expenses are met from the contributions of the members and Karnataka Govt. etc. and therefore it cannot be said that a BAS is being provided. 5.4. The above discussion would show that appellants have made out a case that demand cannot be sustained. Therefore the appeal is allowed with consequential relief, if any, to the appellant. 6. As regards insurance auxiliary service, the appellants have paid the entire amount with interest and an excess amount of more than Rs. 4.5 lakhs has also been paid before the issuance of show-cause notice. Since they have registered and have been paying the tax and have paid the entire amount before the issue of show-cause notice, according to provisions of Section 73 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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