9911796707
TMI Blog2017 (7) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... its customers. Such subvention charges collected are part of the commission, which falls under the taxable category of ‘business auxiliary service’ - the Tribunal in the case of Commissioner of Service Tax, Mumbai Vs. J.M.D. Marketing Pvt. Ltd. [2013 (10) TMI 1446 - CESTAT MUMBAI] has held that the assessee would be liable to pay service tax on gross amount of commission received from banks for m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activity for banks and marketing of bank loan to the prospective customers. For providing such services, the appellant gets the commission from the banks. Out of the commission amount paid by the Bank to the appellant, certain amount towards the subvention charges were directly passed on from the commission account of the appellant in favour of its customers. For non-payment of service tax on such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its that the subsequent show cause notice issued on 21.09.2010 covering the period April, 2008 to March, 2009 is barred by limitation of time and the demand on such ground cannot be sustained. 4. On the other hand, the ld. D.R. appearing for the respondent reiterates the findings recorded in the impugned order. 5. We have heard both sides and perused the records. The fact is not under disput ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount for income tax purpose, the same should not be considered for computation of the service tax liability, we are of the view that the Income Tax provisions are applicable entirely on different circumstances and the statute deals with payment of tax on the earning of income of the assessee concerned; whereas, contrary is the case under the Finance Act, where-under service tax is levied on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k to the adjudicating authority for quantifying the service tax demand. Since, extended period of limitation cannot be invoked in the present case for confirmation of demand, the provisions of Section 78 cannot be invoked for imposition of penalty on the appellant. Therefore, the impugned order is set aside to the extent of imposition of penalty under Section 78 ibid. 8. The appeals are dispose ..... X X X X Extracts X X X X X X X X Extracts X X X X
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