Service Tax on Corporate Guarantee Commission: Inconsistency in Classification by Tax Authorities Raises Concerns.

Levy of service tax - commission earned by providing ‘corporate guarantee’ is taxable, as ‘business auxiliary service’ - It can be gauged from the narrative of the impugned order that, initially, the tax authorities had the same inclination but, for unfathomable reasons, a different ‘taxable service’ was invoked for initiating recovery proceedings. Consequently, there was patent lack of certainty of tax in the mind of the show cause notice issuing authority. - AT .....

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