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TMI Blog2016 (12) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... ce falling under Section 65(104c) of Finance Act, 1994 and not under Business Auxiliary Services. The Business Support Service became taxable w.e.f. 1-5-2006 therefore the appellant’s services being similar, more appropriately classifiable as Business Support Service and the same was not taxable during the period involved in the present case - demand of service tax on the printing service provided by the appellant is not taxable. Therefore demand of service tax and consequential penalty and interest are set aside. Whether input service credit in respect of service tax paid on the premium of insurance policies of employees is admissible in terms of Service Tax Credit Rules, 2002? - Held that: - It is observed that all the three insurance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eration for its services the appellant charges a fee. During the period of dispute appellant paid services tax on all the services provided to the bank except on printing services. As regard the printing services during the course of audit, department observed that the printing services provided by the appellant to the bank is classifiable under Business Auxiliary Services and liable for service tax for which two show cause notices bearing No. ST/DN-V/AR/ADFCPL/135/2004/2877 dated 16-1-2006 for the period 1-7-2003 to 31-3-2004 and second show cause notice No. ST/DV-V/ATLAS/SCN/35/4348 dated 14-10-2009 for the period 1-4-2004 to 31-3-2005 were issued wherein demand of service tax on the printing services for an amount of ₹ 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat as regard entry under clause (iv) of Section 65(19) only services which incidental or auxiliary to the services specified under clause (i) to (iii) therefore the entry under clause (iv) is not independent, it is in respect of services mentioned in clause (i) to (iii). The subject service i.e. printing service does not relate to services mentioned in any of the clause (i) to (iii) therefore it cannot be called as incidental or auxiliary services. She further submits that the services in question more particularly can be categorised under Business Support Services which was not taxable during the relevant period and became taxable only under Section 65(104c) w.e.f. 1-5-2006. In this regard she placed reliance on Hon bl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to M/s. HDFC Bank Ltd during the period July, 2003 to March, 2004 falls under the category of Business Auxiliary Services Clause (iv) and liable for service tax. (2) whether input service credit in respect of service tax paid on the premium of insurance policies of employees is admissible in terms of Service Tax Credit Rules, 2002. As regard the first issue, we find that adjudicating authority as well as first appellate authority confirmed the demand of service tax under the category of Business Auxiliary Service particularly under clause (iv), the said provisions is reproduced below: Section 65(19) Business Auxiliary Service means any service in relation to:- (i) promotion or marketing or sale of goods produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as incidental or auxiliary to any of the service, for this reason also printing service would not fall under clause (iv) of Section 65(19). On careful reading of judgment in case of the Phoenix IT Solutions Ltd. (supra) it is observed that in the said judgment more or less similar services such as spot billing, maintaining account etc were held to be classifiable as Business Support Service falling under Section 65(104c) of Finance Act, 1994 and not under Business Auxiliary Services. The Business Support Service became taxable w.e.f. 1-5-2006 therefore the appellant s services being similar, more appropriately classifiable as Business Support Service and the same was not taxable during the period involved in the present ..... X X X X Extracts X X X X X X X X Extracts X X X X
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