2016 (6) TMI 237

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..... OF INDIA]. Therefore, we are of the view that First Appellate Authority has correctly followed the ratio of the Apex Court and the Board circular and confirms the demand post 06.11.2006 in respect of the commission received from financial institutions and in respect of the demand of service tax on the profit sharing received AutomartIndia Ltd. We noted that it is recorded in the balance sheet as .....

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..... commission received from JCB. In this appeal, revenue is contesting the impugned order on the ground that the First Appellate Authority has confirmed the demand raised on commission received from various financial institutions only from 06.11.2006 while setting aside of the demand in respect of the amounts which is booked as profit on share received from Auto Mark India Ltd. He has recorded the fo .....

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..... vice tax is not invocable. Similarly, the case law in respect of Suchitra components vs. CCE reported in 2008 (11) STR 430 SC is also squarely applicable in the present case whereby the levy in this case is prospective w.e.f. 06.11.2006 which is the date of issue of circular by CBEC. The cumulative effect of the said two judgments of Hon'ble Supreme Court would be that the demand raised prior .....

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..... covered by the ratio of Circular no. 109/03/2009 dtd. 23.02.2009 at sr.no. 2.2 issued by the Board. In the said circular it is clarified that the two contracting parties act on principle to principle basis and one does not provide service to another if they are sharing the profit. Hence, in such an arrangement the activities are not covered under service tax. Therefore, appellant is not liable to .....

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..... rding services rendered by the assessee. We find no merit in the argument put forth by the Departmental Representative as the ratio of the apex court has been correctly followed by the First Appellate Authority. The case in hand the impugned order follows the Board circular and confirms the demand post 06.11.2006 in respect of the commission received from financial institutions and in respect of t .....

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