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TMI Blog2018 (6) TMI 672X X X X Extracts X X X X X X X X Extracts X X X X ..... behalf of ICICI Bank in the category of commercial vehicles. It is to be seen that as per Section 65(19) of Finance Act, 1994 ‘Business Auxiliary Service’ includes any incidental or auxiliary support service includes services such as billing, collection or recovery of cheques amounts and remittance, evaluation of prospective customer and public relation services - the services rendered by respondents come under the ambit of ‘Business Auxiliary Service’ during the relevant period. Regarding the fines and penalties also, the respondents have not made out any strong case in their favor. Appeal allowed - decided in favor of Revenue. - ST/521/2008-DB & ST/536/2008-DB - Final Order No. 20810 – 20811 /2018 - Dated:- 13-6-2018 - Hon&# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 65(104c) Business Auxiliary Service, taxability of activity of promoting or marketing of services and evaluation or development of prospective customer or vendor is with effect from 01.07.2003. The activity undertaken by the appellants of locating customers for the bank, assess their credit worthiness and prepare documentation on behalf of their principal for worthiness, is more in the nature of promoting or marketing of services provided by the client; the respondents are undertaking evaluation of prospective customer by assessing the creditworthiness of the customer; learned Commissioner (Appeals) has only gone into the classification of services rendered by the respondent post 1.5.2006 under Business Support Services ; learned Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of vehicles in documentation and getting the loan amount from the bank. For this the banks are paying certain commissions. We find that the said activities are covered under the tax entry of Business Auxiliary Service in terms of Section 65(105) (zzb) of finance Act 1994 in as much as they are promoting and marketing the services. 2.4. Going by the ratio of Renaissance Leasing Finance Pvt. Ltd. (supra) and Bhaven Desai vs. CST, Mumbai: 2016 (43) STR 235 (Tri-Mumbai), the department s appeal merits to be allowed. 3. Learned counsel for the respondents have submitted that they operate in the premises of various dealers; their personnel are trained by bank officials; they help the customers of banks in documentation pertaining to lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice for the bank. In fact, the bank has outsourced certain works externally to the respondents rather than taking their support for internal working. As per the ratio of the Tribunal s judgment in the case of Bhaven Desai (supra), it can be held that the activity undertaken by respondents squarely falls under Business Auxiliary Service . The arguments of the respondents that they are not advertising or marketing any products or services of their clients i.e. ICICI and hence, they do not fall under Business Auxiliary Service providers is not convincing. Arguably, Business Auxiliary Service is a wide encompassing connotation. It is to be seen that as per Section 65(19) of Finance Act, 1994 Business Auxiliary Service includes any incide ..... X X X X Extracts X X X X X X X X Extracts X X X X
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