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TMI Blog2023 (7) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... anks/Financial Institutions, through concerned authorities. It is observed that though appellants were drafting and preparing legal reports but only for banks/financial institutions that too for ensuring the viability of loan and for verifying the property title documents for which such verification was sought by such banks. It is opined that such activity is nothing beyond a due diligence of financial records of the customers of these banks/ financial institutions. Thus it cannot a service provided as assistance in any branch of law. It actually becomes the service provided to a business entity/a financial institute/bank, to support the business or commerce of the said bank - These observations are sufficient for us to hold that the services, in question, have rightly been held to be the Business Support Service which is a taxable service. Any consideration received by the appellant for rendering such service is therefore liable to tax - there are no infirmity in the order under challenge when the demand of Rs. 16,19,972/- has been confirmed for the period from 2006-2007 to 2009-2010. Management, Maintenance and Repair Services - maintenance charges received for the servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the entire demand was paid by the appellant at the initial stage only - there are no infirmity in the said realization also. Appeal dismissed. - SERVICE TAX APPEAL NO. 51417 OF 2016 - FINAL ORDER NO. 50799/2023 - Dated:- 30-6-2023 - DR. MS. RACHNA GUPTA, MEMBER (JUDICIAL) AND MS. HEMAMBIKA R. PRIYA, MEMBER (TECHNICAL) Shri Kamal Aggarwal, Advocate for the appellant. Dr. Radhe Tallo, Authorized Representative for the Department. ORDER Appellants are engaged in providing taxable services under the category of Business Auxiliary Services to M/s ICICI Bank. While scrutinizing the documents of the appellant, Department observed that they have received total amount of Rs. 1,02,12,656/- for the year 2006-2007 to 2010-2011 as commission received from M/s ICICI Bank holding that the commission was against providing the Business Auxiliary Services , to the bank, the service tax of Rs. 16,19,972/- was observed to not have been paid by the appellants. Appellants were also not found registered with the Service Tax Department. However, certificate was produced by the appellants issued in the name of M/s JNG Properties Leasing Pvt. Ltd. for providing taxable serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the banks while referring customers desirous of seeking loan, to the banks. It is further submitted that the appellant was also a consultant to the banks/financial institutions and thus was rendering the services of drafting and preparing legal reports about the viabilities of the loans and property titles on which loan is sought. Hence, it was purely the Legal Consultancy Service as contrary to Business Support Service as alleged by the Department. The demand is therefore liable to be set aside. The decision as relied upon by the Adjudicating Authority is mentioned to have wrongly been relied upon. It is further submitted that the demand under Management, Maintenance or Repair Services has also been wrongly confirmed. Learned counsel for the appellant, finally impressed upon, that the entire demand is liable to be set aside for the sole reason that show cause notice has been issued invoking the extended period of limitation, despite that no single circumstance exist for the said invocation. The order confirming demand is, therefore, prayed to be set aside and appeal is prayed to be allowed. 6. While rebutting the submissions made on behalf of the appellant, learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Support Service of Business Commerce means services provided in relation to business or commerce includes evaluation of prospective customers, telemarketing, processing of purchase orders and fulfillment services, information and tracking of delivery schedules, managing distribution and logistics, customer relationship management services, accounting and processing of transactions, operational assistance for marketing, formulation for customer service and pricing policies, infrastructural support services and other transaction processing . Thus the definition itself is indicative of list of services to be covered under BAS. The taxability of this service is mentioned under Section 65 (105) (zzzq) of Finance Act, 1944 to read as follows : Taxable Service means any service provided or to be provided to any person, by any other person, in relation to support services of business or commence, in any manner . Thus the basic essence of the Business Support Service is that it must be support service in business and commence. Legal Consultancy is defined under Section 65 (105) (zzzzm) of Finance Act, to read as follows :- Taxable service of legal consultancy me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act as amended w.e.f. 16.06.2005, are as follows : management, maintenance or repair means any service provided by (i) Any other under a contract or an agreement; or (ii) A manufacturer or any person authorized by him, in relation to, - (a) Management of properties, whether immovable or not; (b) Maintenance or repair of properties, whether immovable or not; or (c) Maintenance or repair including reconditioning on restoration, or servicing of any goods, excluding a motor vehicle ; Section 65 (105) (zzq) of Finance Act, 1994 : to any person, by [any other person], in elation to [commercial or industrial] construction 11. The service tax instruction issued vide F. No. B-1/6/2005-TRU dated 27.07.2005 as relied upon by the Commissioner (Appeals) reads as follows :- 16.2 Prior to 16.06.2005, such services covered maintenance or repair or servicing of any goods or equipment, excluding motor vehicles. However, since 16.06.2005, services relating to maintenance or management of immovable property (such as roads, airports, railways, buildings, parks, electrical installations and the like) have also been covered under the purview of service tax. Suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... while doing this activity for their clients, the appellants were actually rendering the service of Maintenance, Management or Repair Service . Hence, we do not find any infirmity in the findings arrived at by the Adjudicating Authority while confirming the demand on this count. 14. Coming to the plea of wrong invocation of extended period of limitation, we observe that appellants are not registered under service tax regime. Though they have mentioned them to be a unit of M/s JNG Properties Leasing Pvt. Ltd. which has duly been registered, but we observe that even M/s JNG Properties Leasing Pvt. Ltd. (supra) is registered for providing Business Auxiliary Services only. From the above discussion, it has already been held that the appellants were rendering Business Support Services and Management, Maintenance or Repair Service . Apparently neither appellants nor their main unit M/s JNG Properties Leasing Pvt. Ltd. are registered for providing later service, to that effect it sufficiently amounts to suppression of facts. It was definitely the obligation of the appellant to bring-forth the fact of non-registration for any other services except for Business Auxiliary Servi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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