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TMI Blog2019 (1) TMI 1883X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the Service Tax Department and was maintaining proper records of their transactions and paying service tax on the services taxable under the Banking and other Financial services. They were also filing regular returns with the Department. Thus, there is no question of Revenue Intelligence getting into of any short payment of service tax. As regards, none-payment of service tax on receipt of reimbursement from the State Marketing Federation, the authorised person of appellant company explained, in the course of investigation, that the same is towards the assistance in procuring paddy. The reimbursement is for the expenses in the nature of various procurement expenses like godown expenses, expenses on transportation of paddy and expenses o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... society was exempted from payment of service tax on reimbursement received from State Marketing Federation, under Notification No.8/2004-ST dated 09.07.2004, or any other notification. (iii) Whether in the facts and circumstances of the case, extended period of limitation under proviso to Section 73(1) could have been invoked. (iv) Whether appellants are liable for penalties under Sections 76, 77 and 78 of the Finance Act, 1994. 2. The brief facts are that (i) Appellant is a Coopeative Society and has also been undertaking banking business. It is involved in agricultural finance to farmers through Primary Agricultural Society . (ii) Appellants are registered with the Service Tax Department and have been paying service tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ried on advisory and other auxiliary financial services including investment and portfolio research and advice, advice on mergers and acquisitions and advice on corporate restructuring and strategy. (ii) Reimbursements towards expenses on transportation, manpower, etc. cannot be classified under Clause a (vi) of the definition of Banking and other Financial Services. (iii) Appellant s activity of facilitating sale/purchase of paddy/fertilizers is in the nature of commission agents services. Appellants always believed that the amount received from Markfed is also exmepted under Notification No.13/2003, as amended by Notification No8/2004-ST dated 09.07.2004, which exempts the Business Auxiliary Services provided by a commission agent i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epartment has not issued show cause notices since October, 2013, on services relating to paddy. Further, in some other similar cases of Cooperative Banks, department has not raised the demand even for the period prior to 01.10.2013. (viii) As it is a dispute on interpretation of Banking other Financial Services, neither extended period of limitation can be invoked, nor penalties under Section 76, 77 and 78 can be imposed. 5. Accordingly, ld. Counsel prays for allowing the appeal with consequential benefits and setting aside the impugned order. 6. Ld. Authorised Representative for the respondent /Revenue relies on the impugned order and reiterated the findings of the Commissioner. 7. Having considered the rival contentions, we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ranslated from service charges to commission. However, there is no change in the nature of services provided by the appellant Bank. Further, it is stated that they are not claiming any commission from the Markfed. It was further stated that administrative charges on Crop Insurance Premium and administrative charges on insurance premium shown during the years 2006-07 to 2010-2011 are included in the head service charges on fertilizer . Only inadvertently the locker rent was not covered in the chart furnished to the Department, which shall be calculated and paid at the earliest. On the specific question, to Mr. Srivastav, whether the Bank is not acting as commission agent of State Marketing Federation , it was stated in reply that Markfed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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