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TMI Blog2024 (4) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... ices, storage and warehousing services, maintenance and repair services. The appellant executed two corporate guarantees dated 10.01.2008 and 07.01.2010 on behalf of Loop Telecom Pvt. Ltd and Loop Mobile Holdings India Ltd. for securing loans, in favour of State Bank of India to the tune of Rs.1537 crores and Rs.400 crores respectively. The appellant was issued show cause notice based on an investigation undertaken by DGCEI, Ahmedabad zonal unit demanding service tax on the Guarantee Commission received by the Appellant by classifying it under the head of Business Support Services. The demand has been confirmed by the Adjudicating Authority vide Order in Original No. SUR/EXCUS/001/COM - 063 - 13 - 14. Hence the present appeal. 1.1 The foll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eged that non- payment of tax was on account of any malafide intention. He further submits that the records of the appellant were audited by jurisdictional service tax officials in January 2009 and the appellant was not subjected to any adverse treatment by the department with respect to levy of service tax on corporate guarantee therefore the department has failed to fulfil ingredients of Section 73 in order to invoke extended period of limitation. 3. Shri Rajesh K. Agarwal learned Superintendent (AR) appearing on behalf of the Revenue reiterates the findings of the impugned order 4. Heard both the sides and perused the records. The main issue in the present case is whether the Corporate Guarantee provided by the Appellant falls under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 infrastructural support such as providing instant offices along with secretarial assistance known as "Business Centre Services". It is proposed to tax all such outsourced services. If these services are provided on behalf of a person, they are already taxed under Business Auxiliary Service. Definition of support services of business or commerce gives indicative list of outsourced services. Circular DOF No. 159/10/2012 - ST dated 19.06.2012 " The services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case, a company. It neither seems to qualify under any of the services included in the understanding of the definition of Business Support Services. Notwithstanding the aforesaid, the services that are required to be construed within the scope of the said definition will necessarily have to include such services that are intrinsically or inextricably associated with the said heading. Nor include within its understanding/execution any such activity that has been outsourced by the Appellant taking into consideration the extended application of the said definition under Section 65 (104c) of the Finance Act, 1994. The tribunal takes support of M/s Sterlite Industries India Ltd vs. Commissioner of GST and Central Excise 2019 TIOL 879 - (CESTAT M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gards the second issue, the Learned Counsel of the Appellant has made submissions on the grounds of both revenue neutrality and limitation. The show cause notice dated 09.10.2012 has been issued for the period 08.02.2008 to 30.06.2012. The Appellant states that post audit of January 2009 they were not subjected to any adverse treatment by the Department as regards levy of tax on Corporate Guarantee based on the responses submitted to the Department for the queries raised in the said audit. All this goes on to show that the Appellant has not suppressed any facts with intention to evade tax payment. Therefore, the show cause notice issued invoking extended period cannot sustain. Appellant succeeds on limitation as well. 5. In light of the af ..... X X X X Extracts X X X X X X X X Extracts X X X X
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