9911796707
TMI Blog2007 (1) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... ialized services for promotion and marketing of home loans and personal loans provided by City Bank. Revenue proceeded against the appellants for payment of service tax on the reimbursement of expenses received by them from M/s City Bank during the period from July 2003 to September 2004. Adjudication proceedings were conducted. The adjudicating Authority held that the appellants are liable to pay service tax under the category of "business auxiliary services" during the period from July 2003 to September 2004. He confirmed an amount of Rs. 54,56,783/- towards their service tax liability for the above mentioned period. Interest under Section 7 of the Finance Act 1994 was demanded. Penalties of Rs. 200/- for every day of default wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s-statement or suppression of facts are concerned, they are qualified by the word "Wilful". The word "Wilful" preceding words "Mis-statement or suppression of facts clearly spells out that there has to be an intention on the part of the assessee to evade duty. (iii) The activities carried on by the appellants in terms of the agreements would fall under "Support Services of Business or Commerce (SSBC for short) under Section 65 (104 C) of the Act, with effect from 1-5-06. The definition .of SSBC covers services provided "in relation to business or commerce and includes evaluation of prospective customers, telemarketing processes" etc., The activities performed by the appellants are appropriately class ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecisions are relied on: (a) CCE v. Narmada Chematur Pharmaceuticals Ltd., 2005 (179) E.L.T. 276 (S.C.) (b) Commr v. Narayan Polyplast, 2005 (179) E.L.T. 20 (S.C.) (vi) A substantial portion is received as reimbursement as admitted in the Show cause notice and impugned order and the same is not chargeable to service tax as per the Trade Notices and Circular enclosed to the compilation and the following two decisions rendered by this Bench. (a) B.S. Refrigeration Ltd., v. CST, 2006 (4) S.T.R. 103 (T-Bang) (b) Scott Wilson Kirkpatrick (I) Pvt. Ltd. v. CST in Final Order No 1775/06, dated 18-10-2006, [2007 S.T.R. 118 (Tribunal)] (vii) Even assuming that the appellant would fall under clause (ii) of the definition of BAS viz., promotion or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of tax and the evasion would not have come to light but for the departmental efforts. The case laws cited by the appellant are not relevant to the case. The extended time limit has been correctly invoked in the case. (2) The Trade notices of the other Commissionerates cited by the appellants have been issued in different contexts and are not applicable to the present case. The appellants claim for deduction is not supported by the provisions of Section 67 of the Act or a notification is sued under Section 93 thereof or the Board's circulars. The claim for deduction of expenses claimed by the appellant is untenable. (3) The appellant's contention on the extended period invoked in this case is not correct. The comparison with a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise on 20-9-2004 regarding the services rendered by his unit. He has enclosed copies of the agreement entered with M/s. Citi Bank N.A. M/s. Citi financial Retail Services India Ltd. A statement has also been taken from Shri Nazar Ali, General Manager on the same day. Shri Sharath Reddy has stated that he was given to understand that service tax is not applicable for the nature of business that he is doing. Service rendered by the appellant unit is sourcing customers for personal loans and housing loans on behalf of M/s Citibank N.A., and M/s. Citi Financial Retail Services India Ltd. The issues to be decided are the following: (1) Under what category the services rendered by the appellant are liable to service tax in terms of Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the category of business auxiliary services. We reproduce the definition of "business auxiliary services." "(19) "business auxiliary service" means any service in relation to, (i) promotion or marketing or sale of goods produced or provided by or belonging to the client; or (ii) promotion or marketing of service provided by the client; or (iii) any customers care service provided on behalf of the client; or (iv) any incidental or auxiliary support service such as billing collection or recovery of cheques, accounts and maintenance, evaluation of prospective customs & public relation services, as a Commission agent, but does not include any information technology service". From the above, it is seen that p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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