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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 ..... the name of M/s JNG Properties & Leasing Pvt. Ltd. for providing taxable services as that of Business Auxiliary Services. It was mentioned by the appellant that they are the unit of said M/s JNG Properties, hence, they have not taken registration separately. The ITR returns for the impugned period were also submitted to prove the same. 2. During the further scrutiny, department observed that appellants have received some income as legal and professional charges amounting to Rs. 36,55,792/-, Rs. 18,93,710/-, Rs. 24,04,105/- and Rs. 24,45,358/- respectively for the aforesaid period, however, the tax liability thereupon has not been discharged. The department while forming the opinion that the said activity of providing legal and professional consultancy is nothing but a 'Business Support Services' for the banks/financial institutes, the service tax liability was questioned. In addition, appellant was also observed to have received maintenance charges of Rs. 1,97,584/- and Rs. 1,98,000/- respectively for the financial year 2009-2010 and 2010-2011. Observing those services as a consideration towards providing taxable service under category of 'Management, Maintenance or Repair Servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rebutting the submissions made on behalf of the appellant, learned Departmental Representative has reiterated the findings of order of Commissioner (Appeals). It is mentioned that the demand under 'Business Auxiliary Services' has already been dropped by Commissioner (Appeals), with respect to the imposition of penalties, though Commissioner (Appeals) has accepted the findings of lower authority, however, has considered that if the appellants have made the payment of entire service tax liability, they are to be given the benefit of paying penalty @ 25%. Concerned authority has accordingly been directed to verify the same and if found correct, to give the benefit of paying penalty @ 25%. It is submitted that while providing the services to the bank about verification of the particulars of the loanee, the appellants have been providing a 'Business Support Service' impressing upon no infirmity in the order under challenge. Appeal is prayed to be dismissed. 7. Having heard the rival submissions, we observed that in the impugned show cause notice, following were the allegations against the appellant :- (a) The appellant is working as a Direct Sales Agent/ Associate (DSA) of M/s ICIC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - "Taxable service of legal consultancy" means any service to a business entity, by any other business entity in relation to advice, consultancy or assistance in any branch of law in any manner." 9. The bare perusal of the definitions reveal that whenever a business entity gives any opinion or offers expert or professional advice or any other business entity in any branch of law it will be called as 'Legal Consultancy Service'. However, when advice consultancy or assistance is provided purely to the banks/ financial institutions with respect to sanctioning of loans to their clients by way of verification of documents provided by the customers of these banks/financial institutes for the purpose of availing the credit facility, the service rendered, is for the appraisal of business reports with respect to the verification of the clients, of the banks/Financial Institutions, through concerned authorities. We observe 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. We opine that such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e purview of service tax. Such services would be taxable when provided under a contract or an agreement by any person or by a manufacturer or any person authorized by a manufacturer. 16.3 Maintenance is to keep a machine, building etc. in a good condition by periodically checking and servicing or repairing. While repair is a one time activity, maintenance is a continuous process of which repairing may be incidental or ancillary. 16.4 Prior to 16.06.2005, maintenance or repair carried out under a maintenance contract or agreement was covered under service tax. Repair or servicing carried out under a contract other than a maintenance contract or agreement was not covered within the purview of service tax. Maintenance or repair, including reconditioning or restoration or servicing of any goods or equipment, except motor vehicle (which is taxable under the category of authorized service station), undertaken as part of any contract or agreement (not necessarily maintenance contract or agreement) is now liable to service tax under this category of taxable service. To attract service tax under this category, the contract or agreement need not necessarily be a maintenance contract/ag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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