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TMI Blog2018 (11) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... thus, as far as the valuation of services is converned the rejection of subvention cannot be permitted in light of above decision. Extended period of limitation - Held that:- There is no scope for interpretation or doubt in this regard and thus there cannot be any bonafide doubt regarding taxability of the service provided by the appellant - there is no merit in the argument on limitation canvassed by the Ld. Counsel. Appeal dismissed - decided against appellant. - Appeal No.ST/74-75/2009-DB - A/12180-12181/2018 - Dated:- 18-10-2018 - MR. RAMESH NAIR, MEMBER (JUDICIAL) And MR. RAJU, MEMBER (TECHNICAL) For Appellant: Mr. Rohit Lalwani (Advocate) For Respondent: Mr. K.J. Kinariwala (AR) ORDER Per: Raju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of subvention. 4. Ld. AR relies on the impugned order. He argued that M/s Javiya had received payment from their clients, they had not shown entire amount of commission received in quarterly/ monthly service tax returns for the period 01.07.2003 to 30.08.2005 in respect of Javiya Finance Services. He pointed out that though Javiya Finance Services was registered but Javiya Marketing services was not even registered and had not filed any ST-3 returns. He argued that both these proprietorship concern belonging to two brothers and were operating under the same Roof. He further argued that as far as the issue of includibility of subvention in the taxable value is concerned, the matter has been settled by this Tribunal in the following ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ifts to the appellant to disprove the same. Therefore, we hold that the amount of commission paid by the bank for promotion of their financial products by the appellant to customers is subject to payment of Service Tax. The amount of commission declared by the appellant in their Service Tax Returns was less than the amount of commission declared by HDFC to the department. Even if some part of the commission was given by the bank to the customers directly on behalf of the appellant, the fact remains that the bank has shown full amount of commission as paid to the appellant. Board Circular 87/05/2006-S.T., dated 6-11-2006 supports this view while stating that if part of the dealer s commission is shared with the customers, that is an independ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... portion of that commission, which as per the particulars provided by the Bank was given as pay out to assessees in respect of which even the TDS was deducted, was spent by them. If they chose to give some amount from that gross commission amount to their customers either directly or through the bank, it would not change the nature of the receipts in their hand. Thus, in light of above decision as far as the valuation of services is converned the rejection of subvention cannot be permitted in light of above decision. 6. The next issue relates to invocation of extended period of limitation. We find that Javiya Marketing was neither registered with the Service Tax Department nor it was filing Service Tax returns. The definition of B ..... X X X X Extracts X X X X X X X X Extracts X X X X
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