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TMI Blog2023 (5) TMI 1027X X X X Extracts X X X X X X X X Extracts X X X X ..... s services which include continuity of supply, Intention to offer, Consistency of Boxes, sight holder Extranet services, SOC integrity (3rd party verification) provision of key Account Manager provided by them, as also Business sustainability services like consumer demand, consumer confidence, Best practice principles (BPP) (given at no additional cost along with supply of planning of tools services) which include creating consumer confidence for natural diamond, certification process to ensure that the diamond are mined from conflict-free zones and are not involved into illegal or illegitimate activities. The value added services provided by the overseas entity are part and parcel of the rough diamond supplied by them and considering th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant has also concedes the fact that it is not contesting the demand confirmed under Business Auxiliary Service. Therefore, the appellant is liable to pay service tax confirmed in the adjudication order with regard to that category of service. Hence, there are no infirmity in the impugned order insofar as it has confirmed the adjudged demands under the Business Auxiliary Service. The matter should go back to the original authority for the limited purpose of quantifying the service tax demand with regard to the Business Auxiliary Service, which should be paid for the units by the appellant - Appeal allowed in part. - Service Tax Appeal No. 86090 of 2016 - FINAL ORDER NO. A/85673/2023 - Dated:- 25-4-2023 - MR. S.K. MOHANTY, MEMBER (JU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seeking confirmation of service tax demand on the provision of both the category services namely Business Support Service and Business Auxiliary Service . The matter arising out of the show cause notices was adjudicated vide the impugned order dated 27.11.2015, wherein the learned Commissioner of Service Tax-IV, Mumbai had confirmed the service tax demand of Rs. 83,58,374/- for the period 2011-12 and Rs. 54,07,332/- for the period 2012-13 along with interest. Feeling aggrieved with the impugned order, the appellant has preferred this appeal before the Tribunal. 2. Learned Advocate appearing for the appellant submitted that the appellant is not contesting the service tax demand confirmed under the taxable category of Business Auxiliar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d services were provided in relation to sale of cut and polished diamonds by the appellant to its customers in India, such services are to be considered as support services of the business activities undertaken by the appellant and should be taxed under the category of Business of Support Service. 4. Heard both sides and examined the case records. 5. On perusal of the case records, we find that apart from supplying the rough diamonds to the appellants, the overseas entity had supplied the value added service to the appellant, which were levied with the service tax demand by the department confirming those services to fall under the scope and ambit of the taxable service namely Business Support Service. The VAS services include supply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd not otherwise. Considering the true scope and purpose of the definition of Business Support Service, the Tax Research Unit in the Department of Revenue vide D.O.F. No.334/4/2006-TRU dated 28.02.2006 has clarified as under. Such clarification was furnished pursuant to the changes made in the Finance Act, 1994 with regard to introduction of the new levy under the category of Business Support Service as a part of Finance Bill, 2006. 3.13. BUSINESS SUPPORT SERVICES : Business entities outsource a number of services for use in business or commerce. These services include transaction processing, routine administration or accountancy, customer relationship management and tele-marketing. There are also business entities which provide infra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is liable to pay service tax confirmed in the adjudication order with regard to that category of service. Hence, we do not find any infirmity in the impugned order insofar as it has confirmed the adjudged demands under the Business Auxiliary Service. However, since the adjudicating authority has not segregated the demand in respect of the two category of services confirmed in the impugned order, we are of the view that the matter should go back to the original authority for the limited purpose of quantifying the service tax demand with regard to the Business Auxiliary Service, which should be paid for the units by the appellant. It is expected that while computing the service tax liability to be confirmed under such service, the adjudicatin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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