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Landmark Service Tax Judgment - Business Auxiliary Services. Explanation - For the removal of doubts, it is hereby declared that for the purposes of this clause, —. Services provided in relation to promotion or marketing of service provided by the client is leviable to Service Tax under business auxiliary service.

Marketing or promotion means activities which are directed towards furtherance of sale.

Weizmann Forex, Dwarakanagar, Vizag

Organization and selling of lotteries are globally treated as supply of service. Lotteries Regulation Act, enables State Governments to organize, conduct or promote lotteries. Lottery tickets are printed by the State governments and are sold through agents or distributors. Tickets are delivered by the State Government to the distributors at a discounted price as compared to the face value of the tickets.

Service provided by the distributors or agents in relation to promotion or marketing of lottery tickets are leviable to Service Tax.

Lotteries fall under the category of games of chance. Games of chance are known under various names like lottery, lotto, bingo etc. Activities relating to procurement of inputs, production of goods not amounting to manufacture or provision of services on behalf of a client is included in Business Auxiliary Service. Thus, the procurements of input, capital goods or input services as defined in the CENVAT Credit Rules, by any person for a client i.

Thus, it has very wide scope for levying Service Tax. As per the definition of Business Auxiliary services, services as commission agent are considered Business Auxiliary services. Commission person who acts on behalf of another person and causes sale or purchase of goods, or provision or receipt of services, for a consideration, and includes any person who, while acting on behalf of another person i deals with goods or services or documents of title to such goods or services; or ii collects payment of sale price of such goods or services; or iii guarantees for collection or payment for such goods or services; or iv undertakes any activities relating to such sale or purchase of such goods or services.

As regards the question whether Insurance agents, Clearing and Forwarding agents working on commission basis fall under the definition of business auxiliary service, it is clarified that they do not, as they are specifically covered within the definition of other specified taxable services, namely the Insurance service and Clearing and Forwarding Service respectively. Under Section 65A of Finance Actit has also been provided that in case of overlap, a service would be classified under the head, a which provides most specific description, b in case of a composite service having combination of different taxable services, the service which give them their essential character and c in case the test of a and b does not resolve, the service which comes earlier in the clauses of Section 65, i.

Since, Insurance services and Clearing and Forwarding Services are more specific description and were also subjected to Service Tax prior to imposition of tax on business auxiliary service, the insurance agents, Clearing and Forwarding agents working on commission basis would fall under those respective categories.

From this, it follows that a particular service can be taxed only under one head of service. It is not possible to give an exhaustive list of business auxiliary services, the following are illustrations of services that are covered under this category viz.

The services provided in relation to getting a customer, verification of prospective customer, processing of purchase order etc would also be covered under Service Tax.

The activity of production or processing of goods for, or on behalf of, the client either amounts to manufacture or it amounts to Job work. According to Section 65 19 business auxiliary services does not include any activity that amounts to manufacture.

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This exclusion is given to avoid double taxation on same product. Manufacture attracts levy of Excise duty, thus the production or process which does amount to manufacture is excluded from levy of Service Tax. The definition of Job Worker is given in CENVAT Credit Rules According to Rule 2 n of the said rules, " job work " means processing or working upon of raw material or semi-finished goods supplied to the job worker, so as to complete a part or whole of the process resulting in the manufacture or finishing of an article or any operation which is essential for aforesaid process and the expression " job worker " shall be construed accordingly.

So, if process amounts to manufacture the duty of Excise will be levied and if it does not amount to manufacture the Service Tax can be levied. Exemption can be availed only if a goods are produced using raw materials or semi-finished goods supplied by the client and goods so produced are returned back to the said client b for use in or in relation to manufacture of any goods falling under the First Schedule to the Central Excise Tariff Act,c on which appropriate duty of excise is payable.

Services in relation to agriculture, printing, textile processing or education which consisted of. Taxable service provided by a person, having his place of business, fixed establishment, permanent address or usual place of residence, in a country other than India, and which is received by a hotel located in India, in relation to booking of an accommodation in the said hotel, for a customer, who has his place of business, fixed establishment, permanent address or usual place of residence, in a country other than India, is exempt from the whole of the Service Tax.

Here, expression "hotel" means a place that provides boarding and lodging facilities to public on commercial basis. Processes outsourced in gem and jewellery sector which amount to 'manufacture' within the scope of Section 2 f of the Central Excise Act, would not be liable to Service Tax. As production of goods on behalf of the client is leviable to Service Tax under 'Business Auxiliary Service' only if such production activity does not amount to manufacture. Activity of 'Erection, Commissioning or Installation Service ECIS: Since prima facie the case is not in favour of the petitioner on the aspect of classification of the services provided as BASon which tax liability is assessed, grant waiver of predeposit can not be considered.

However petitioner shall be liable to pay the service tax as assessed for BAS, after taking credit for any amounts already remitted towards BAS provided during to March The adjudicating authority, erred in categorizing the service element of transactions as ECIS.

If the petitioner had provided services to its customers by way of installation of the electronic goods sold by it and the expenditure incurred thereby any other amounts was reimbursed by the principal manufacturers, the services may amount to BAS provided by the petitioner to the manufacturers of the goods but not ECIS.

There is a strong prima facie case in favour of the petitioner on the demand attributed to ECIS. Service tax on the commission received: The issue involved in this case stands decided by the Tribunal in the case of Paul Merchant Ltd. In view of this, the Commissioner Appeals 's order upholding the service tax demand alongwith interest and penalty under Section 78 is not sustainable.

Prima facie case for waiver not found: Directions issued for pre deposit. Activity undertaken by the appellant is a part of manufacturing process and the principal manufacturer was paying duty on the goods processed by the appellant. To arrange for finance and granting of loans to provides certain services relating to the granting of loans, for and on behalf of the bank and for these activities the assessee is receiving commission, hence is liable to service tax under the "Business Auxiliary Service,".

Business Auxiliary Service during June to February Letting out immovable properties to run Cafe Coffee Day: Even though the agreement is termed as "Franchise Agreement", it is essential an agreement relating to letting out immoveable property for running outlet of "Cafe Coffee Day". Further as the properties are being taken to run Cafe Coffee Day, certain conditions have been enumerated so as to ensure the smooth functioning of outlets on day to day basis and cooperation by Appellants in this regard.

ABCTCL, in taking necessary clearance from the Co-operative Housing Societies, Local bodies etc. However, beyond that appellants have no role for day to day running of the outlets. Appellants have not done any activity relating to promoting or marketing or sale or goods produced or provided by, belonging to the client.

There is no any auxiliary service relating to any of the clauses mentioned in the definition or service of the type enumerated in the last clause of the definition has been provided by the appellants.

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Revenue's contention that the service provided by the appellants are covered under Business Auxiliary Service is not acceptable. Applicants are providing service to the Jharkhand State Electricity Board, which comprises meter reading, preparation of monthly energy bill, delivery of the bills to customers, preparation and supply of consumer ledger etc.

Directions issued for partial pre deposit. Elektroschmelzwerk Kempten GmbH, Munich, Germany in India: In similar circumstances, in Eldyne Electro Systems Pvt. Following the said precedent decision, recovery stayed during the pendency of the appeal. Commission received by appellants not covered for tax: Whether the appellant is liable to service tax for having provided BAS to other corporate entities; and whether services so provided fall within BAS, cannot be dependent upon the accident of the appellant's grace in choosing to respond to requisition of information by lawful authority, in this case the Revenue arm of the federal Government: According to the department, since the goods were cargo, the service falls outside "goods transport" and since the activity involved handling of cargo meant for export, was outside the purview of cargo handling, in view of the exclutionery clause in Section 65 Whether the transportation was of goods meant for export in the containers, requires further examination at the hearing of the appeal: If the petitioner was providing the anti-corrosion treatment for its own material, there would be no question of a taxable service having been provided, since service to oneself is not a taxable service: The petitioner, exported rice, sesame, seeds cashew nuts etc.

Admittedly, processing of these commodities was not done by the cultivator of these agricultural produce but by third party agencies. Whether in the circumstances, the benefit of Notification No. The exemption Notification squarely applies. The "Explanation" to this Notification defines 'Commission Agent" meaning a person who causes sale or purchase of goods, on behalf of another person for a consideration which is based on the quantum of such sale or purchase.

Clause ii appended to the existing Explanation added by the amendment defines 'agricultural produce'. A TRU clarification issued in Circular No. The conclusion by the adjudicating authority that commission paid by the petitioner to its overseas agents for facilitating export of rice, sesame seeds, cashew nuts etc. Corporate bank guarantee commission: Prima facie, such corporate guarantee constitutes a service provided by the Singapore entity to the petitioner for facilitating its business for procurement of indigenous agricultural produce etc.

The Singapore corporate entity was neither a Bank nor had provided a bank guarantee. This would not, constitute bank guarantee within the meaning of the said expression in Section 65 12 of the Act. Sale of BSNL Sim Cards: On the same issue in the case of the same applicants earlier directions given for partial pre deposit: Accordingly, directions for partial pre deposit made. Production or Processing of Goods on behalf of the client: The goods after processing are returned to the original raw materials supplied by DSP and the finished product produced from the processed raw materials are cleared on payment of duty, is also not in dispute: Appellants contention that the activity carried out by them amounts to manufacture: Also two show cause notices issued invoking larger period: Appellants already paid substantial amount in respect of first show cause notice: Pre deposit waived for balance amounts.

Adjudicating authority has clearly recorded that ERP system is related to software networking and is liable to be charged with effect from Matter remanded to Commissioner A.

Respondents is arranging loans from various financial institutions like LIC Housing, IDBI Bank and HDFC Bank. They are procuring customers for these institutions and get the loan sanctioned to these customers and in lieu of this service they receive the Commission from these institutions and this way they are promoting or marketing the services of these institution and are squarely covered under clause ii of definition of Business Auxiliary Service: Show cause notices were issued on the basis of a prima facie assumption by Revenue that the assessee was assessable to levy of service tax for providing BAS: Reasons however not specified in the show cause notices: Mere extraction of the entire provisions of Section 65 19 of the Act does not fulfill the requirement.

Air Travel Agent or Business Auxiliary Service: Commission received by appellant from IATA: Classification of the services rendered by the sub-broker or sub-agent remains the same as that of main broker: As per judgment of Delhi High Court Rule 5 1 of the Valuation Rules held ultravires of Section 67 of the Finance Act, Washing of coal whether falls under Mining Service or BAS: Whether the Cenvat credit could be availed in respect of inputs received prior to registration, is an issue which has to be appropriately considered at the final hearing of the appeal: Prima facie not persuaded with the petitioner's claim for immunity under Section 73 3 of the Act: Commission earned on sale of mutual funds: Appellants rendered promotion of business of services and not goods, hence, not covered under any exemption clause: Dominant intention of both the parties in the agreement appears to be that the player has to play cricket and wear the logo and other things but the main objection of agreement is to ensure that the appellant played as per the requirement of franchisees: Commission Agent who Procures orders would be Covered Under: Activity of charging Carriage Fees is covered under Business Auxiliary Service: BSS not discussed as it was not in existence at the material time.

Service of commission agent abroad for sale promotion activities: Taxability under reverse charge mechanism applicable. Relationship between the appellant and the Bank on principal to principal basis and it was not a agency relationship as is specifically stated in the agreement.

In view of the specific provisions in the agreements pertaining to the transaction, it is very clear that the appellant was not acting as a pure agent. Therefore, the liability to pay service tax on the payouts for data confirmation was squarely on the appellant: Whether the appellant can be compelled to avail unconditional exemption available for 'Business Auxiliary Service' BAS rendered to printing industry: Entire service is exported and there is no domestic consumption of the service rendered by the appellant: In the absence of a provision similar to the provision under Section 5A 1A of the Central Excise Act according to which the unconditional exemption has to be necessarily availed, such a condition cannot be enforced in respect of service tax.

No income received by appellant during the period: Board Circular states Brand Promotion taxable from Harvesting of sugarcane and transportation of the same to the sugar factory: To undertake that work they have entered into an agreement with the contractors who have provided the manpower for harvesting of the sugarcane and transportation of the same: In any service activity, manpower is required.

That does not make the service as supply of manpower. Otherwise, all services would have to be classified as "manpower supply service".

Processing of tobacco leaves: Tobacco leaves undergo process to make that soft and stem therefrom is separated for further procession. When the whole leave processed that finally goes for drying process. In terms of Notification No.

Waiver from pre deposit ordered. Discount is not commission. No reasons given in the Order for classifying the service under a particular category: Within the framework of the agreements, considered in the context of the taxable BAS, as defined in Sections 65 19 read with 65 zzb of the Act, the conclusion is uncontestable that the appellant was rendering the taxable BAS since the appellant was clearly marketing and providing services in relation to sale of goods IMFL, Beer etc.

When a number of services are rendered, for the purpose of classification, the principal service which gives the essential character to the service has to be seen: From the documentary evidence available on record, the essential character of the service is that of a Del Credere Agent which is classifiable under Business Auxiliary Service.

Activity of sale and purchase: To constitute 'Business Auxiliary Service' as defined in Section 65 19 read with Section 65 zzb the service provider shall provide service to his client for marketing or promotion of the goods to a third party: Therefore, the question of rendering the service to their client for marketing of their goods does not arise: Documents available on record, prima facie, indicate the transaction to be one of sale and not of service: Commission paid for sale promotion admissible as input service: Appellants themselves eligible for cenvat credit, a case of revenue neutraility.

If that be so, there is no reason why the same part of the transaction value should be taken out of the customs transaction and subjected to Service Tax under the guise of Business Auxiliary Services. When the word 'processing' was included in the definition only with effect from There was no physical receipt of storage or forwarding of the goods to the customers by the marketing agents: Support Services for Business: At the first blush but on deeper analysis of the transaction considered as a whole and on an inter active analysis of the several terms and conditions of the agreement, duly considering the raft of obligations to be executed by the assessee under the terms and conditions of the agreement; the percentage of allocation of the total consideration to the activity of processing of bills, the activity of software development, master file creation and software maintenance and the general tenor of the contractual obligations of the assessee and considered in the light of core expectations from the agreement, the assessee was required to perform business auxiliary services and not support of business or commerce service which came later or information technology service.

Appellant also issued an export invoice to the foreign buyer to realise the export proceeds: Documents on records clearly evidence that the transaction involved purchase and sale of goods on a principal to principal basis and not as an agent of anybody else: As a matter of fact, the crucial findings recorded by the Commissioner on the basis of the terms and conditions of the dealership agreement have not been specifically challenged in the appeal, apart from an observation of the appellant to the effect that the findings are based on presumptions and assumptions: In a context relating to Section of the Transfer of Property Act, that retreading of tyres did not amount to "manufacturing process".

Incentive for selling cars is a trade discount, not liable to service tax. Factually assessee has been not only promoting or procuring orders but was also doing demonstration, installation and training the customers in India for the use of machinery as supplied by the foreign manufacturer: Appellants sharing the expenses of employees with the Group companies on actual basis: After May, they started paying service tax on this activity under BSS: Commissioner ordering classification under BAS without any giving specific findings: On the margins involved in selling of cargo space: Sale of cargo space is not sale of goods but supply of service.

The consideration for the service is the margin involved in the purchase and sale of space and accordingly, service tax is leviable on the said activity: Electroplating of connector Components: Process amounts to manufacture: Excluded from purview of BAS: Even if it is considered that the process does not amount to manufacture, the benefit of exemption under Notification No. Exemption for services of commission agent obtained abroad by manufacturer: Declaration not filed, return not filed: Waste Water or any waste for dispersal per se cannot be considered as goods.

Consideration to the foreign service providers for obtaining FCCB and ECBs: Support Service for Business: Customers visit a retail mall because of the variety of goods offered for sale of reputed brands under one roof, the comfortable atmosphere for shopping, facility for small children by way of play area, etc. There is no denial of the fact it is because of these facilities, customers are attracted to Retail Malls. All these come under the category of infrastructural facilities.

Section 65 c of the Finance Act, defines "support services for business or commerce" and services covered thereunder. Service provided by the sub-agents is business auxiliary service provided to Western Union and the same has to be treated as export of service and would not be taxable in India.

Levy of Service Tax in respect of Processing Fee received from the Bank: Therefore, as clarified by the CBEC through two Circulars, the appellants are not liable to pay service tax. Tax demanded on notional basis that the appellant received commission in the month of March which is disputed by the appellant: Matter needs to be examined by the lower authority on this issue: Matter remanded back to the original authority to consider the submission of the appellant in this issue amongst other and to pass order in accordance with law.

Agreement showed that it was for rendering executor services and for sharing of the cost towards the same. Since computerised data processing is specifically excluded from the scope of BAS as per explanation thereof, the question of confirmation of demand under BAS prima facie does not arise: Bulk of data processing is done for the bank's branches situated abroad, the activity undertaken by the appellant would amount to export of service and on that account also no service tax would be payable by the appellant: Question was whether the appellant who is a direct selling agent and renders the services of the bank is liable to discharge service tax on the amount received as commission: Confusion prevailed at the material time: Penalty pre deposit waived.

Activities undertaken by the appellant are freight forwarding, collection of freight charges and remitting the same to the foreign principal.

Activity of packaging undertaken in respect of fertilizer would form an integral part of the manufacturing activity and cannot be viewed as a service activity, especially in the context of the packaging activity as defined in Section 65 76b which excludes from its scope any activity of manufacture as defined in Section 2 f of the Central Excise Act, Commission paid to foreign agent for procuring orders: Liability to pay tax: Already paid major amount of tax: Pre deposit for balance amounts waived.

Procurement of raw materials for group companies: Prima facie case made out for waiver. Activities under taken by the appellant during the period April 07 to Sep 09 being a manufacturing activity carried out cannot be classifies as business support service and subjected to service tax. No documents produced relating to receipt of payment for Advertising agency: Prima facie case not found in favour of appellants on merits.

Commission agency service rendered by the appellants in respect of sale of earth moving equipment is classifiable under "Business Auxiliary Service" and not under "Clearing and Forwarding Agency" service.

Intellectual Property Right Service: Prima facie case not found: Whether packing activity amounts to manufacture: Appellants doing activity on job work for Hindustan Unilever Limited: Department alleges that activity does not amount to manufacture: Department not able to show why the activity does not amount to manufacture and why the benefit of Notification No.

Inputs received under Rule 4 5 a of Cenvat Credit Rules, shows that the activity undertaken was central excise activity: Since issue not examined: Discounts and incentives received from media to the appellants is includable in the value of the services rendered by the appellants to their clients under the category of "Business Auxiliary Service".

Further, the appellant ensures that the goods are sold at the terms and discounts specified in writing by VML from time to time. The appellants charged 3. No dispute as to the fact that the appellant herein had received the parts of the Barbie Dolls as well as the Hot Wheel Kits, which they assembled in the factory premises. When the goods were cleared from the appellant's factory premises, they were complete product in the form of Barbie Dolls and Hot Wheel Kits.

The said activity undertaken by the appellant, prima facie, would fall under the definition of manufacture under Section 2 f of Central Excise Act, Commission received from BSNL for sale of SIM cards and recharge coupons: Sale purchase of SIM cards, recharge coupons and top-up coupons belonging to BSNL: Demand of service tax on the distributors of BSNL is not sustainable.

Prima facie covered under BAS: As per guidelines issued for granting stay, directions issued for partial pre deposit. Commercial concern is no the criteria for levy of service tax: Larger period not invokable: Demand for normal period sustained. Transfer of money from foreign nations to India: Western Union is getting their payment from the person remitting money abroad and hence obviously the services rendered by PML is ultimately used by the person remitting the money from abroad.

Impugned service is used outside India and would qualify as export of services as per conditions laid down in Rule 3 1 iii of Export of Services Rules, Appellant is not eligible for the benefit under Notification No. It is not in relation to sale or procurement of sugar cane and, therefore, Notification No. Commission or trade discount: Appellants having paid most part of service tax and disputing liability to pay service tax on merits: Appellants are the manufacturer of country liquor under the brand name "Pahili Dhar" which is registered trade name of the appellant themselves.

Talreja Trade HUF for marketing this liquor. Therefore, it cannot be said that the appellant are the job workers for Talreja Trade. Further, if at all any demand, of service tax could have been made, that could have been made against only Talreja Trade as they are the selling agents of the appellants. Consequent upon merger of Indian Airlines Limited and Air India Limited services provided by IAL to AASL Airline Allied Service Ltd created as a subsidiary company: Looking to the financial difficulties being faced by the national carrier, stay granted.

Directions issued for making partial pre deposit. Matrix has already discharged service tax: No need to issue show cause notice. Appellant received commission from Fashion Suitings Pvt. Directions for making similar pre deposit issued. Appellants paid service tax with interest before the issuance of show cause notice: Considered as sufficient for pre deposit: Appellant has undertaken the activity of harvesting sugarcane and its transportation to sugar factory from the fields of farmers and this activity is in relation to sale of sugarcane by farmers and purchase of sugarcane by the sugar factory and service provided of a commission agent: Appellants provided services classifiable under IT Service and not BAS: Preparation of loan documents covered: Appellant under bonafide belief did not pay service tax: Immediately on being pointed out they paid service tax with interest: Bonafide proved and waiver under Section 80 exercised: Appellants rented two DG sets to ONGC: This cannot be considered as service covered under BAS: Appellant a proprietorship concern: During the relevant period there was levy of tax only on commercial concern: Hence, demand set aside.

Period prior to and post 1. Various services provided by appellants, issues not discussed in the impugned order, nor appellants co-operated: Appellants reimbursed amounts to their group company in USA for purchase of software from Microsoft USA: No evidence that appellants group company retained any portion of amount with them: No evidence of commission paid: Prima facie payment not covered for any service rendered: There being confusion prevailing during the material period, larger period cannot be invoked: Demand for normal period to be worked out and confirmed.

Appellant entered into contract with ETTSA for computerization of VAT: Appellant sub-contract work of WAN to HSCL: It cannot be said that appellants procured goods for their client ETTSA: For major part of demand prima facie case found: Waiver granted from pre deposit. Sale of SIM Cards and recharge coupons issued by BSNL: Commission received for providing use of turf not covered under this category. It is a mining activity and for earlier period would not fall under Business Auxiliary Service: Activity of loading unloading of coal from washery is connected activity and not an independent activity, hence, not a taxable service under Cargo Handling Service.

Relation between appellants and company not on principal to principal basis which is evident from amount of commission received by them: Prima facie case for waiver not made out. Activity of harvesting sugarcane and its transportation to sugar factory from the fields of farmers and this activity is in relation to sale of sugarcane by farmers and purchase of sugarcane by the sugar factory and service provided of a commission agent: Not covered under BAS: Appellants selling products of the Bank.

The products of the Banks were nothing but Banking services. Therefore, ex facie, the appellant was marketing the services provided by their clients, viz. Demand confirmed under BAS for computer training courses conducted by appellants in agreement with Maharashtra Knowledge Corporation: Liability on commission received from financial institutions: Facts needs to be verified from double taxation point of view. Contention of appellants that they were only doing trading activity not found meritorious: Directions for pre deposit issued.

Sale of SIM Cards: Relation between appellants and Bharti Cellular is of purchaser and seller: Show Cause Notice issued much later than the date on which facts came within the knowledge of the department: Demand dropped on limitation ground. Only when the user and the use of the service are located outside India, the transaction amounts to export and not otherwise.

Discount earned from print media is not taxable. Referal charges received by the appellants for promoting business of banks is taxable: Cum-tax benefit to be allowed: Penalty under Section 78 imposable. No stretch imagination, payment of goodwill on transfer of business can come under the category of business auxiliary service. It is their submission that this activity involved export of services and hence not taxable: A trading activity and no service portion involved: Issue no more res integra: Sale of SIM Card on commission basis: SSI exemption notification talks about sale of brand name and sale of Amway product is not service to the brand name: Order passed only based on Wikipedia without taking into consideration any submissions of the appellant: Matter remanded back to Commissioner for passing fresh order.

Gross value received is taxable: Appellants did not receive the same amounts as shown by ICICI bank in its books of accounts as ICICI bank had made payments to customers directly out of these amounts: Service received from abroad prior to Commission received in foreign exchange from up country exempted from levy of service tax upto July, Appellant had confusion about levy of service tax as the entry was not clear: Any service provided in relation to installation of electrical and electronic devices, including wirings or fittings, became taxable from Appellants collected telephone bills on behalf of BSNL: Service tax liability not disputed, but service tax paid belatedly: Liability to pay interest cannot be disputed as interest is appendix to service tax.

Directions issued to make pre deposit. In view of different views expressed by different benches: Benefit to be extended to the assessee: Manufacturers have given certificates that they have paid excise duty on the goods received from appellants: Appellants purchased power for coating and raised bills in the name of manufacturer: Conditions of Notification No.

Appellants collecting Passenger Service Fees from passengers on behalf of AAI: Service covered under BSS and not under BAS: Commission for selling SIM Cards of Vodafone: Service tax paid immediately being pointed out and before issuance of show cause notice: Section 80 invoked for waiver of penalty under Section Sell or purchase of SIM cards: Not a service, but only trading: On limitation there were contradictory decisions, hence, larger period demand set aside.

Adjudicating authority did not examine eligibility for threshold exemption properly for the first year and for the second year the services in relation to agriculture: Supply of labour to run HPCL retain outlet not covered under BAS: Order beyond the scope of show cause notice: Even then category incorrectly mentioned in the SCN, if liability arises under any category it can be confirmed: Directions issued for pre deposit and matter remanded to original authority.

Appellants rendering services to international steamer agents: Various incomes received purported to be included in valuation under BAS: No specific findings about nature of service: Looking to huge amount matter fixed for early hearing. Services rendered by the appellants for recovery of dues is not covered under BAS but covered under BSS: Also the contention of appellants that income shown in the balance sheet was not fully attributable to this service for which they also produced CA certificate which is discussed in the impugned order but no findings have been given: Stay given and matter remanded.

Same to be treated as sufficient by Commissioner A and matter remanded for fresh decision. Service provided to Punjab Government, but Government is not paying any remuneration to appellants: Prima facie case for waiver made out. Commission paid to overseas agent for booking orders: Under reverse charge mechanism liability to pay arises only from Legitimate working from home jobs uk, to April, During the material period service tax under the category of BAS was leviable on commercial concern and not on the individual.

Advertisement by manufacturers of medicines in news bulletin covered under sale of space or time for advertisement: I mposition of tax on a particular activity from a specified date would mean that the impugned activity is not taxable prior to specified date under existing entries and heads. Providing services to financiers: During the period in dispute there was confusion, hence, bonafide belief established: Service tax and interest not being disputed: Section 80 invoked for waiver of penalties.

When the appellant was providing comprehensive sanitation assistance to Jaipur Municipal Corporation, it cannot be said to have provided Business Auxiliary Service. Appellants entered into agreement with foreign cricketers to play IPL matches in India: Contention of appellants that new service introduced from 1. Appellant working as sub-agent of Corporate Agent providing services as Agent and paying service tax on reverse charge mechanism: Corporate agent paid service tax on entire commission received by him and shared a part with the appellants: Prima facie case made out for waiver of pre deposit.

Appellants earning commission and discount from mutual fund companies: Allegation that appellants getting the goods manufactured on job work basis: It was found that there is a relationship of principal and agent between the Appellant and job worker.

Hence, condition of pre deposit waived. Activities of appellants show that they were not merely commission agent, hence, benefit of Notification No. Reimbursable expenses on actual basis towards transportation and making other facilities for principal admissible: Reimbursable expenses for salary and wages not admissible. Directions to make pre deposit issued taking into consideration that the appellants is a Charitable trust and hence facing financial difficulty in making pre deposit.

Sale of Naptha and Furnace oil on high sea sales basis: When there is an agreement for sale and purchase of the product and element of service is absent no service tax can be charged on the services included in the value of the goods. Real Estate Agent Service" and "Business Auxiliary Services: SICCL is a matter of accounting jugglery. Prima facie, there is disagreement with the ld. Therefore, at this stage, the demand on this account is sustainable.

Therefore, any service related to these "debenture" is not covered under "Business Auxiliary Service". Therefore, demands under this head are also not sustainable. Para 11 As the applicants have not disclosed the activities undertaken by them to the department, prima facie the extended period of limitation is invocable.

Partial pre-deposit is ordered, and on compliance balance amount of service tax, interest and penalties shall remain stayed during the pendency of appeal. Sale of Sim Card: The activities so carried out in terms of the agreement was not of taxable nature during relevant period and was not expected to be taxed which is clear from para 18 of the Board's Circular No.

When the law itself did not require the appellant to be liable. Therefore, there is no further warrant to look into suppression aspect when on merit the appeal succeeds.

Consequently appeal railway stocks in stock market philippines allowed. No direct nexus between service provided and commission received: Now that the very basis of the show-cause notices has collapsed the impugned orders are set aside and the appeals of the assessee are allowed.

Discount on the bills earned by appellants not at par with commission on which they paid service tax, this being only price mechanism not liable to tax as commission. When there is an imposition of tax on a particular activity from a specific date, the same activity cannot be held to be falling under a different entry prior to the said date. Income from Mutual Funds: Prima facie case made pay forecast binary options. Collection of bills for electricity and telephone not covered under BAS.

Commission on sale of sim cards, recharge coupons etc. It is established that cboe put call ratio oex of sim cards does not attract service tax liability under the category of business auxiliary services. Condition of pre-deposit of duties and penalties waived and allow the stay petition unconditionally.

Providing space to financial institutions in authorized service station: The demand raised beyond the normal period of limitation against the appellant is clearly barred by limitation. Accordingly, set-aside the impugned order on the said ground and allow the appeal with consequential relief to the appellants. Receipt of liquor from various manufacturers who are distilleries, brewery, blending unit: The appellant is engaged in an activity akin to trading and the activities undertaken by the appellant is nothing but a sale of liquor and cannot be held as services rendered to the distilleries.

The impugned orders is set aside and appeals allowed. Prima facie, the assessees have promoted or marketed insurance mediclaim policy and therefore have rendered Business Auxiliary Service. Amadeus and have therefore rendered Business Auxiliary Service. Income received from cancellation of tickets also prima facie amounts to rendering of Air Travel Agent's service.

The assessees have, therefore, not made out a case for total waiver of tax. As per Section 65 19 of the Finance Act, the business auxiliary service has been defined wherein a specific sub clause v is introduced to bring production of goods for, or on behalf of the client within the scope of Service Tax levy. Accordingly, demand is confirmed. The issue involved in this matter is of interpretation of the statute, hence it is fit case to invoke section 80 of finance Act to waive penalty.

Accordingly, penalty is waived and appeal is disposed of. In view of the categorical finding by the Commissioner that the value of the goods supplied was not known to the service provider and the charges were made on the service receivers on the basis of percentage, appellant has not been able to make out a strong prima-facie case in their favour. The appellant should be directed to deposit an amount of Rs.

Service tax sought on maintenance of software received from foreign company: In view of the recognized fact that there was doubt relating to the taxability of the service as noted by the Board circular dated 6. Commission received for distribution of mutual fund units: As the main contractor has duly discharged service tax liability on the said commission, service tax is not liable to be paid by the applicants as Finance Act does not provide for double taxation of the services.

Accordingly, waiver of entire service tax and various penalties para 3,6. Collection of toll tax: Collecting toll tax is a sovereign function and cannot be termed as business auxiliary service.

The applicant has made out a strong prima facie case in their favour. Accordingly, waiver of entire tax, interest and penalty is allowed and its recovery stayed during pendency of the appeal. No credit was taken in respect of invoice dated Since matter can be decided finally which both sides agree, the appeal itself is taken up for decision the impugned order is set aside in toto with consequential relief to the appellants.

Services received from abroad: Cenvat Credit utilised for discharge of Tax under Section 66A: The appellant is deprived of making use of the Cenvat credit. Since the matter in controversy involves question of law, there may be waiver of pre-deposit during pendency of the appeal. Activity amounting to manufacture: This aspect was also part of the activity of the appellant for all the periods covered by order-in-appeal dated The circular is binding on the departmental authorities.

The impugned order is set aside and this appeal is allowed para 2,3. The enabling provisions of Section 66 A of the Act, for charging of service tax from the service recipient in India, in respect of taxable services received from abroad from a person not having office or establishment in India was introduced w.

The Revenue's appeal as well as stay application is dismissed. In respect of demand relating to other services, demand arising out of credit on various services, the same are contentious and the submissions in respect of each of them have to be gone into in detail at the time of final hearing. Taking the entire facts and circumstances into account, direct the applicant to deposit a sum of Rs. Authorised service station and Business auxiliary service: Prima facie that the sale of parts and components during rendering services during warranty period cannot be treated as part of the services.

Therefore, the demand of about Rs. Incentives paid to the dealers: The incentives have a direct relationship with the value of goods so sold on which excise duty becomes payable. To treat the value as representing the value of business auxiliary services, is prima facie not correct.

And therefore, the demand of about Rs. The impugned order of Commissioner is set aside and allow the appeal with consequential relief. Appellate preparing bills on the tailor made software and handing over the bills to clients not to the customers of the clients: Show Cause not travelled beyond scope: The show cause notice only makes a statement of fact that call centre service was exempt till 1. Registering forex bureau rates in ghana complaints and collection of bills: Clarification which widens the scope of tax cannot have retrospective effect: In every case, word 'maintenance' has been used.

In the absence of the word 'development' and presence of word 'maintenance' in the agreement, and also in view of the failure of the appellant to submit bifurcation, have to take a view that the agreement covers maintenance only. In view of the ratio of the decision in the case of Martin Lottery Agencies Ltd, it would not be appropriate to apply the explanation retrospectively and levy Service Tax w,e.

In any case, the very fact that explanation has been added to clarify doubts, would show that suppression of facts could not have been invoked in this case.

In view of the above decision, maintenance of software became taxable only from 1. Support services of business or commerce: When the meter reading is not done by the implementing agency, as can be seen from the contract with the respective Assistant Accounts Officers or EROs are required to provide meter reading books on the prescribed dates and the appellant is required to enter the data of meter readings, verify the same, incorporate in the computer master and process the bills, this activity is correctly classifiable under SSBC as claimed by the learned Advocate.

The spot billing and HT billing is also covered in the same category. This service is clearly covered by SSBC since it is in relation to forex trading system 96 winners or commerce, which is nothing but supply of electricity and recovery of cost thereof.

It is covered by "managing distribution and distribution logistics". In this case, by doing energy audit, the appellant is assisting in finding out whether all the electricity received has been sold and if not, where the problem lies. This is nothing but management of distribution and logistics of electricity supplies. Therefore, this is clearly covered under SSBC and not under Business Auxiliary Service. In this case, development of software only facilitates the consumer indexing and real work is physical in nature as observed by learned Commissioner.

Back office services and other activities such as tax service, international assignment service etc. It was also observed that use of computer in these services was secondary and primary activity was that of business related work. Therefore, it is quite clear that this cannot be classified as I.

This facilitates better distribution of electricity and also solves logistics problems when complaints are received. Therefore, this service is also appropriately classifiable under SSBC. Watch and Ward Route Rider service: This is a part of Electricity Call Centre, Customer Service Centre and Computerized Collection Centre and is a subsidiary activity relating to them. These services are classifiable under Business Auxiliary Service only. Therefore, this service is also correctly classifiable under Business Auxiliary Service.

Extended period of limitation: It is a statutory obligation on the part of every service provider to see whether the service rendered by him is liable to Service Tax and make declaration to the department. There is no indication to show whether the appellant had sought clarification from the department or obtained any legal opinion as regards liability to Service Tax.

There was a statutory obligation cast on the appellant to obtain registration and pay Service Tax in respect of various services. It has to be noted that even on 3. Therefore, have to uphold the invocation of extended period. The learned Commissioner has imposed penalty under Section 76 but has not quantified the same. Therefore, to this extent, the impugned order is defective.

The demand has to be re-quantified, since in some cases, the classification has been changed and in some cases, the appellant's claims have been accepted.

Further, as already observed, the corrigendum was issued to amend the amount of Service Tax demanded. Further, penalty under Section 76 of Finance Act,has not been quantified. For this purpose, the impugned order is required to be set aside and matter remanded to original adjudicating authority for fresh decision para 24, Commission received for promoting business: The Revenue was fully aware of the activities and as such, with introduction of a new services under the category of business canadian tire stock market symbol services with effect from 1.

There is no monthly euro exchange rates reflecting upon any positive act of suppression or misstatement with intent to evade payment of duty by the appellant.

Reflection of the income and the said activity is the ledger account and the balance sheet will reflect upon the absence of any willful suppression or mis-statement on the part of the appellant so as to invoke longer period of limitation. On this short point, allow the stay petition unconditionally.

If non-obtaining of registration can be held to be a factor for invocation of longer period, no case of demand which stand subsequently made, would be held to be barred by limitation. The appellant has a prima facie, case on time-bar. The stay petition is allowed unconditionally.

There was reasonable cause for failure on the part of the assessee to clear the dues in time. The said finding cannot be said to be either perverse or not borne out from the record.

In those circumstances, the discretion having been exercised by the Commissioner in favour of the assessee, in the peculiar facts of the case, do not find a case for interference with the impugned order. The very nature of the entry relating to Business Auxiliary Service and the large number of disputes that arose regarding the scope of entry clearly show that there was some confusion in the minds of prospective assesses about the scope of this entry.

The definition of "Business Auxiliary Services" during the period The appellant has made out a prima stock market investment in the 1920s case for waiver of the pre-deposit of the amounts involved.

Application for waiver of the pre-deposit of the amounts involved is allowed and recovery thereof stayed till the disposal of the appeal. Machining of castings carried out by the assessees on job-work basis for clients: The impugned order is set aside and remand the case for fresh decision on the basis of the assessee's explanation as to how their activity.

The appeal is thus allowed by way of remand. Activity of rendering various services to promote sale of liquor owned by the suppliers: There is no dispute that the impugned activities are undertaken by the Corporation with the sole object of promoting sale of liquor manufactured by various distilleries in Kerala. However, these activities would assume the character of services exigible under the Act if the liquor received from the suppliers continued to be the property of various distilleries till its sale by the Corporation.

In fine, if the Corporation takes over supplies of liquor from the various distilleries when it receives them in its warehouses on sale by the suppliers, the question fx money map forex peace army the Corporation rendering any taxable service to the distilleries in promoting the sale of liquor manufactured by the distilleries does not arise.

The question is whether there is sale of liquor by the suppliers at the threshold. KSBC is an instrumentality of the state and holds the monopoly for purchase and sale of foreign liquor, beer and wine throughout the state of Kerala under licences. The activities of the Corporation are governed by the Abkari Act of the state. KSBC holds exclusive licences for selling liquor in wholesale and retail in the form of FL-9 and FL-1 licences. KSBC is assessed to sales tax under the Kerala General Sales Tax Act, and the Central Sales Tax, Purchases made under rate contract: The Corporation receives the goods under invoices from the distilleries in terms of the rate contracts entered into between the Corporation and the distilleries.

The consideration for the goods received is made over to the suppliers within the time limit as per the schedule prescribed in the rate contract i. The supplies received and retained in the warehouse of the Corporation are the property of the Corporation: Sale of the supplies take place on delivery of goods to the Corporation in terms of the contract.

The supplies received and retained in the warehouse of the Corporation are, therefore, the property of the Corporation. Though the Corporation charges the liquor manufacturers for services rendered by it to promote the sale of liquor, these are recoveries or penalties imposed on the suppliers as per the contract. Since the sale takes place on delivery of goods under terms of contract, activities undertaken by the Corporation cannot be held to be services rendered to somebody else and, therefore, exigible to Service tax.

Clauses in the rate contract govern the consideration determined and exchanged. The relevant conditions are mutually agreed prior to supply of the goods. Sales Tax is levied on the first sale by the appellants: As per Section 5 2C of the KGST Act, sales tax is levied on the first sale by the appellant.

This statutory requirement does not make the transfer of liquor by the distilleries to the Corporation, a transaction not constituting sale. The impugned services are rendered to promote sale of goods belonging to the appellant itself and not of the suppliers, these do not constitute Business Auxiliary Service on which the Corporation has to pay tax-As the Corporation owned the goods on delivery by the suppliers, it could not have rendered any service including storage and warehousing in respect of those goods to another person.

Therefore, the impugned demand and penalties are not sustainable. The appellants are justified in contending that the entry relating to brand promotion under Section 65 zzzzq was introduced w. This obviously shows that the brand promotion was not included in the category of business auxiliary services prior to the said date.

Introduction of new Service: It is settled law that the charge created by introducing a new entry and consequently taxability thereupon, the question of imposing the duty retrospectively does not arise. The statutory provision did not provide brand promotion to be a taxable service during the relevant period. It is not for this Tribunal to deal with the issue as to whether display of logo would fall in this category or not. It was for the department to establish the positive effects of display of logo and it was not for the assessee to prove the negative.

The burden to establish the charge was squarely upon the department which it failed to discharge. Beyond the scope of the show cause notice: The adjudicating authority, for the reasons disclosed herein above, did travel beyond the scope of the show cause notice while deciding the matter.

Application for stay on operation of order: Commission received from finance companies: In view of the above decision, prima-facie, no merit in the stay application and the same is dismissed. Bharti Airtel Limited they also sell the mobile phones. Absolutely no inquiry has been made with the respondents and no statement in this regard asking them about the source of the income declared to the income tax authorities has been recorded. The evidence gathered by does money bring happiness college essays Department is not sufficient to establish even the preponderance of probability.

Exemption under Notification No. The Notification in question reads as under: Since the appellant herein is an individual and procuring the goods for clients which are inputs for his client, the assessee is covered by the first part of the Notification and stop loss forex explained, therefore, entitled to benefit of the exemption under Notification No.

Hence, the demand of Service Tax, interest and penalty is unsustainable. Appellant not a commercial concern, hence, not liable to pay service tax prior to May, Appellant causing sales for Aadishwar Motors and Shraddha Motors, Notification no. Matter remanded for verification of contracts.

As per Explanation zzzm of Section 65 of the Act, sale of space for advertisement in print media is exempted from levy of service tax. This activity will not fall under the category of Business Auxiliary Services as they have received the Commission and they have not charged or provided any services to the Indian claimants as held in an identical issue came up before this bench in the case of Muthoot FinCorp Ltd.

The services rendered by the appellant of money transfer is directly to Western Union. If that be so, it can be said that the appellant is providing the services to Western Union whose beneficiaries are outside India. CBEC vide its circular No. Show cause notice do not specify exact classification: In the show-cause notice basic to the proceedings, the impugned activities were proposed to be classified under BAS and BSS.

This proposal was confirmed by the Original Authority. This order is not in accordance with the law. The impugned order held that UTL provided services on behalf of the client i.

Director, e-Seva and sustained the demand. Under BAS, there are seven sub-clauses. Demand under sub-clause vii could be on activities relatable to either one of the preceding six sub-clauses. Therefore, if a notice issued proposing demand under BAS, the notice will not be aware to the precise ground on which tax is proposed to be demanded from him unless the sub-clause is specified.

In the instant case, service tax was proposed to be demanded for an activity under BAS and Forex brokeri u srbiji. Under BSS also several activities are listed as exigible under that head. In the absence of proposal in the show-cause notice as to the liability of the assessee under the precise provision in the Act, we find the demand to be not sustainable.

Accordingly, the demand and penalties imposed on the appellants is vacated and allow this appeal. From the definition of 'support services of business or commerce', it includes a particular activity "managing distribution and logistics". The activity undertaken by the appellant, fall under the category of "managing distribution and logistics" i.

The logistics is transportation of the said goods from the factory to the regional sales office. The activities rendered by the appellant would be 60s ebook on binary option systems only under the category of 'business support services' and that also with effect from The impugned order is not sustainable and liable to be weizmann forex ltd visakhapatnam aside.

The appeal is allowed with consequential relief. Tribunal has already looked into the matter, following the judicial discipline, dismiss the appeal of Revenue upholding the first appellate order. Non Profit Making Organisation: Having only little funds in their bank account would cause undue financial hardship: Interest charged for finance provided cannot be considered as liable to service tax under the category of business auxiliary service: Help or information; or b contacts customers including prospective customer, for the purpose of sales, telemarketing, payments through telephone, leased lines, satellite links, mail, fax wed chat and use of information system for monitoring and recording information on behalf of another person.

The respondents are not acting for one party but for multiple parties and in the process, all are benefited. The primary function of the respondents is nothing but that of the Call Center. Appeals filed by the Revenue are without any merits and accordingly, reject the same. Being a new service and that too in the name of business auxiliary service, it is quite possible that appellant was not aware of his liability.

Therefore as soon as he came to know and even before investigation started he took the registration is required to be considered as a favourable point. The appeal is allowed by setting aside the penalty under Section 76 and Section 78 of Finance Act, It is made clear that penalty under Section 77 for contravention of various provisions is sustained.

Learned Commissioner has rightly denied the benefit of the exemption under the said notification. There is no infirmity with the impugned order. Accordingly, the impugned order is upheld and the appeal is dismissed.

Space provided to financial instutions at authorised service stations: There was doubt in the field as regards coverage of above activity under the category of Business Auxiliary service. The same stand clarified by the Board's notification dt. Inasmuch as the period is much earlier to the issuance of said circular and the show cause notice stand issued on Accordingly, the impugned order is set aside on the above issue and the appeal is allowed with consequential relief to the appellant.

Prima facie the record shows that appellants had provided BAS service and received remuneration from SICCL: Partial stay granted with directions to deposit part amount of tax, interest and penalty. Liability to service tax arises only w. The service tax demand is required to be re-quantified for the period post In view of clear language of Section 80 of the Finance Act,the assessees are correct in contending that once the shelter under Section 80 has been extended by the Commissioner Appeals and this part of the order has not been challenged by the Revenue, no penalty could have been how to earn money through internet freely. Set aside the penalties as reduced by the Commissioner Appeals.

Allotment of PAN card to Income Tax assesses: In the present case, the definition of "business auxiliary service" under Section 65 19 was amended with effect from Waiver of pre-deposit and stay of recovery in respect of the dues adjudged against the appellant.

Brokerage paid to yarn brokers: Before the Commissioner Appeals the assessees conceded that tax on commission paid to depot managers is payable. Not required to consider any argument on the sustainability of this demand which is accordingly uphold. The demand of Rs. Commissioner of Central Excise, Chennai. As regards penalties, in view of the fact that the demand of approximately Rs.

The appeal is thus partly allowed by setting aside only demand of tax of Rs. The respondents have made out a strong prima facie case for its entitlement to credit on the strength of the provisions contained in the Exim Policy.

Do not find it necessary to interfere with the impugned order at forex quantity stage. The stay applications are rejected. The appellant had provided table space to the financial institutions for which they were getting some money from them.

The issue involved in this case is covered by the decision of Silicon Honda STO CESTAT wherein it was held that the activity for providing the table space to the financial institutions cannot be brought within the definition of "Business Auxiliary Service". Hence the demands are not sustainable.

Service provided to foreign supplier: The benefit of the service provided by the appellant accrued to the foreign companies outside India. In this case the service of procuring the purchase orders for the foreign supplier who is outside India and those procurement at purchase orders of good were used by the foreign supplier outside India and acted upon them supplied the goods from outside India. Following the ratio in the case of KSH International Pvt.

Strapping of wire rods at buy stock without brokerage account factory of manufacturer not covered under BAS at the most it is activity relating to packaging: Prima facie case made out: Lower authorities have not substantiated under which options break even point calculator the various categories of taxable activities enumerated under BAS, the impugned, activity is classifiable.

Complete waiver of pre-deposit of the adjudged dues and stay recovery thereof pending decision in the appeal. Collection of taxes and deposit with Government merely operation of bank accounts: Applicants already deposited substantial amount: On the basis of meritorious contention and fact of having already paid substantial amount stay from the balance amount of service tax, penalties and interest granted.

Appellant a CHA gets brokerage from steamer agent for providing containers: The impugned demand for three categories of services without indicating the process liability under the different heads is not legally sustainable. Site formation and clearance, excavation and earthmoving and demolition: The impugned activities of surveying, drilling, blasting excavation and raising iron ore, transporting them for the purpose of sorting into iron ore lumps and iron ore fines, crushing, grading, etc.

The period of dispute in the instant case is from 1. Therefore, prima facie the impugned activities cannot be taxed under any pre-existing entry. Turnkey contract cannot be vivisected: The appellants weizmann forex ltd visakhapatnam rightly relied on decision of the Tribunal in Daelim Industrial Co. CCE STO CESTAT 9 wherein it was held by the Tribunal that a turnkey contract could not be vivisected and part of it subjected to service tax.

The appellants have made out a prima facie case against the demand and penalties. Typically binary options trading signals review waiver of pre-deposit of the dues para 7,8.

Production the option trader handbook strategies and trade adjustments iron ore amounts to manufacture and not liable to Service Tax: The appellants have substantiated their claim that production of iron ore is an exigible activity by reproducing Chapter of the Central Excise Tariff, provision for ores and Notification No. Liability of Del Credere Agent: Agent who is obligated to indemnify his principal in event of loss to principal as result of credit extended by agent to third party.

Commissioner of Central Excise. Service received from outside India: The how much money does a neonatal nurse practitioner make has been decided by the Hon'ble Bombay High Court in the case of Indian National Ship owners Association holding that yorkie poo puppies for sale in harrisburg pa of service from outside India is liable for service tax only from In the present case, the period involved is prior to The appeals are rejected.

The appellant has made out a prima facie case for waiver of pre-deposit. Accordingly, stay application for waiver of pre -deposit of the amounts involved in the impugned order is allowed and recovery thereof stayed till the disposal of the appeal. Refund claim of Service Tax without challenging the assessment - There is no such order or decision of the Central Excise officer, which is to be challenged. In that situation, the appellants cannot file any appeal against their own assessment.

Accordingly, the impugned order is set aside and the appeal filed by the appellants is allowed. Delay in payment of Service Tax: After hearing both sides and taking into account the facts and circumstances of the case and also keeping in view that the delay in payment occurred in the period immediately after imposition of the new levy, the appellants can be given the benefit of the provisions of Section 80 for the initial period for penalties imposed under Section 76 and The penalty imposed under Section 75A is confirmed as Section 80 has no applicability to penalties imposed under Section 75A.

The appeal is partly allowed in the above terms. The railway siding charges are not covered under the scope of port service and the same are not related to vessels or goods and also in the case of Chennai Port Trust held that the service in question is Business Auxiliary Service. Keeping in view the above decision, the pre-deposit of the amounts of Service Tax and penalty are waived.

Machining, drilling, turning, surfacing on iron castings: The service tax liability is set aside for the gandalf cp money maker upto Penalty under Section 76 and 78 is set aside by extending protection under Section 80 of the Finance Act, The appeal is partly allowed by setting aside the demand prior to There is also no allegation of any fraud, collusion and wilful suppression of facts with intention to evade payment of service tax.

Therefore, prima facie, this case appears to be covered by the provisions of Sub-section 3 of Section 73 of the Finance Act,read with Board's Circular No. Requirement of pre-deposit of penalty is waived for hearing of the appeal. Stay application is allowed. The activity undertaken by the appellant is excluded from the purview of 'business auxiliary service' and the demand of service tax and penalties against the appellant are not sustainable.

Commercial or Industrial Construction Service: The Onshore Terminal in question receives impure natural gas extracted from the earth beneath the sea, where it is processed and stored for distribution. CICS does not apply to work relating to certain, specified utilities viz. The argument of the appellants that the principle of "ejusdem generis" does not apply to interpret the expression transport terminal appearing in the list of items excluded from the definition of CICS is not correct.

Principle of "ejusdem generis" applies in understanding the scope of transport terminal appearing in the company of facilities such as roads, railways, airport which are built and maintained by the government or municipality as found by the Commissioner. Section 65 25b of the Act, as amended, defines the term "Commercial or Industrial Construction service". The Onshore Terminal in question constructed for storage and purification of natural gas extracted by Reliance Industries Ltd.

This argument is incorrect; all the items in the list are public goods and are provided by governments at different levels. It is not an item of infrastructure of public utility or civic amenity like the items in the definition of the service. Scope and whether the benefit of exemption in terms of Notification No. The assesses were doing production not amounting to manufacture during the entire period in question and hence liable to Service Tax and that the benefit of Notification No.

Whether a process would amount to manufacture within the meaning of section 2 f has to be seen independently, based on the criteria evolved through various judgments of apex court. There may be a case, when a process may amount to manufacture under section 2 f but it may not result in emergence of an excisable product. If that be so, then the exclusion clause under BAS, which refers only to the activity amounting to manufacture within the meaning of section 2 fwould still apply to such processes, whether or not the resultant product are excisable goods.

Commissioner Appeals has reduced the penalty taking note of the fact that appellants discharged the tax liability with interest as soon as they came to know of the liability. Further, he has also found that appellants were acting as one of the agents of Reliance Industries Ltd. Further, they were also acting as del credere agent when required by Reliance Industries Ltd.

The dell credere services provided by the appellants were considered to be relating to promotion or marketing or sale of goods and held to be classifiable as business auxiliary services. This shows that appellants were not aware about their service tax liability and also the bonafide of the appellants.

Further, the nature of the activity undertaken by the appellants also shows that there was room for such an opinion. The Notification issued by the Ministry of Road Transport and Highways authorizes persons, who builds and transfers the highway, to collect toll tax. Ministry vide amendment Notification dt. Such Toll tax collected is exempt from payment of Service Tax. In view of this, the Service Tax demanded on the amount of toll charges collected by the appellant does not have a strong basis.

As regards the service tax liability on the passenger cars servicing, the appellants are discharging their service tax liability. The service tax liability in this appeal is restricted to the cost of free services in respect of 'light commercial vehicles'. Since, it is undisputed, in this case, that the amount received by the appellant is in respect of servicing of 'light commercial vehicles', the Circular would directly apply and appellant is not liable to pay any Service Tax on such amount received by him.

CBEC in a Master Circular No. Activity that during the months from The issue involved is regarding service tax, liability of the appellants as recipient of services for the commission paid by them to the agents who are staying outside India.

The period involved is from July to June We find that the decisions of Hon'ble High Court of Mumbai in the case of Indian National Shipowners Association vs. STO Bom 78followed by High Court of Delhi in the case of Unitech Ltd. Commissioner of Service Tax, Delhi STO Del squarely cover the issue in favour of the appellants. Assessee paid commission to the said foreign agents for getting export orders: The issue involved is regarding service tax liability of the appellants as recipient of services for the commission paid by them to the agents who are staying outside India.

The decisions of Hon'ble High Court of Mumbai in the case of Indian National Shipowners Association vs. The, revisionary authority has recorded a finding that the applicant is managing the IPO issue and collection of the application money etc. It is undisputed that the services provided by the applicant is to the companies who are offering shares which may not be covered as a taxable service during the relevant period.

Accordingly, the applicant has made out a prima facie case Para 5. Sale of sim cards and recharge coupons as distributors of BSNL: Liability on commission earned by distributor: BSNL had discharged service tax on the sale value of the sim cards and recharge coupons to the ultimate customers under "Business Auxiliary Services". The dispute stands settled in favour of the appellants vide decision of this Tribunal in the case of R. CCE, Trichy as reported in STO CESTAT and also in the case of Vallamattam Communications Vs.

CCE, Cochin reported at STO CESTAT wherein held that once BSNL had paid service tax on the ultimate sale price of the sim cards and recharge coupons, distributors of BSNL were not required to discharge service tax under "Business Auxiliary Services", on the commission allowed to them as discount by BSNL.

Commission agent under Business auxiliary service: The appellant was a commission agent covered by the Notification No. This notification had undergone amendment and after But for the period prior to The agreement describe the scope of activity at page Commissioner has not come out with the clear finding about each activity falling different categories.

Only a compendium view was taken by the authority to deny the exemption provided by the notification. It is not the case for invocation of Section 78 penal provisions inasmuch as during the relevant period there was doubt about all such service being covered under the category of "Business Auxiliary Services". The said fact becomes evident from the Circular No.

Commissioner Appeals has attributed the suppression to the appellants on the sole ground that they have agreed to pay the service tax voluntarily much before any kind of communication from the department. The trade was entertaining doubt is clear from the first line of the Board Circular which is a reasonable cause in terms of the provisions of Section 80, to set aside the penalty imposed under Section 78 of the Act.

Business Auxiliary Service by arranging shipment of export cargo and receiving commission: Waiver of pre-deposit and stay: Strong prima facie case for unconditional waiver has been made out in the light of the Tribunal's order in the case of Bhuvaneswari Agencies P Ltd.

Commissioner of Central Excise, Bangalore [ STO CESTAT ] holding that activity of rendering services of arranging shipment of export cargo and negotiating the same with shipping lines on behalf of the clients does not fall under the category of Business Auxiliary service.

MALCO by doing drilling, deep-hole blasting, removal of overburden, breaking of larger boulders to the required size, blending of Bauxite, loading of the blended Bauxite into trucks etc.: The activities carried out by the applicants are relating to mining of minerals which prima facie has been brought into the ambit of service tax only with effect from The period in dispute in the present case is September to December CBEC Circular date Applicants have made out a strong prima facie case for unconditional waiver.

The activity of manufacturing of the product by the applicants is for and on behalf of his clients and in the manner described under the contract between the applicants and his clients. This being the finding which is not in contravention of the Circular issued by the Board on 27th October, Prima facie, no case having been made out for grant of stay of the impugned order demanding the Service Tax.

Appellants are not procuring input through a third person and supply directly to the client, but are heating the oil in their premises. Therefore, this activity will not amount to their rendering "Business Auxiliary Service" so as to hold them liable to Service Tax.

Commission received in foreign exchange: In respect of the amount received from the foreign party, the same was exempted from payment of Service Tax vide Notification No.

Even the period after rescinding of the Notification would be covered by the fact that the services were exported and would not be liable for payment of Service Tax. However, this point has not been taken up by the Commissioner Aas the appellant did not produce the evidence before him. In these circumstances, matter remanded to the Original Authority for deciding the issue de novo Para 5.

There is no indication to show whether appellants are covered by the definition or to show that the service provided was that of consulting engineer. On the basis of assumptions and presumptions, a case cannot be made out against the appellant.

However, from the records it is found that appellants could get the details of TDS sufficiently in advance and therefore the explanation relating to other deductions does not appear to be valid.

It cannot be said that they had undertaken the various activities on behalf of any other person. It was only with effect from Share Transfer Agents Service, which became taxable w. Service Tax refund is granted after holding that such payment had been made under a mistake of law. Call centre services to State Electricity Board: The adjudication order lacks clarity. The appellants have shown that they had rendered a call centre services to State Electricity Board.

The said notification has been amended by Notification No. The activities carried out by the appellant would indeed fall within the ambit of call centre as defined in the said notification. Attention was also invited to Board's clarification dated In view of the above position, at this stage, waiver of the pre-deposit of the balance amount demanded in the impugned order is granted Para 4. Sales promotion has specifically been included in the definition of 'input service'. Complete waiver of pre-deposit.

Predeposit of penalty not to be insisted upon: The appeal should have been heard without insisting on pre-deposit of the penalties imposed. In the circumstances, the case is remanded to the Commissioner Appeals with the direction that the appeal shall be disposed on merits without insisting on the appellants making any pre-deposit.

The appeal is allowed by way of remand. Clearing and Forwarding' services for the period 1. Collection centre engaged in collection of samples and forwarding the same to the concerned laboratories for testing would not come within the purview of Business Auxiliary Services.

Revenue proceeded against the appellant demanding service tax under the category of "Business Auxiliary Service" for the period from Date of the show cause notice is In a similar matter of the same appellant, they were put to terms in the Stay Order No. However, in this case, the learned Advocate pleaded time bar, as there was no suppression of facts.

Hence, on account of time bar, full waiver of the amount demanded in the impugned order is granted, till the appeal is decided. It is settled that a turn key contract cannot be vivisected and a part of it subjected to service tax. Burden to the Assessee: Case involving minor amount where the Commissioner Appeals has allowed the appeal of the respondent based on the verification of facts even than Revenue filed this appeal. This is definitely improper exercise of power and unnecessary burden to the assessee.

Received commission for selling of SIM cards: UOI STO SC 19 observed that what a SIM Card represents is a question of fact. It is also observed that if the SIM Card is not sold by the assessee to the subscribers but is merely part of services rendered by the service providers, then a SIM Card cannot be charged separately to sales tax. In the present case, the adjudicating authority had not disputed that Spice Communication Pvt. It appears that SIM Card would be separate object of sale.

Hence, the Commissioner Appeals has rightly set aside the demand of tax Para 6. Activity of improvement of the roads, routine maintenance and also include maintenance of toll booths, collection and remittance of toll amount to the National Highway Authority of India: The matter is before the Tribunal for the second time.

In the earlier round of litigation, a sum of amount stands pre-deposited. The merits of the case has to be gone into in detail at the time of final hearing. However, the demand is hit by time bar for the period from In view of the above, the sum of pre-deposit already deposited is sufficient for the purpose of Section 35 F Para 5. Activity of transfer of money including telegraphic transfer, mail transfer and electronic transfer: This can be done only at the time of final hearing.

As such, the applicant has not made out a prima facie case for complete waiver Para 6. The issue is a very contentious one. Applicant is involved in the transfer of money including telegraphic transfer, mail transfer and electronic transfer. As such, applicant has not made out a prima facie case for complete waiver Para 6. No Suppression of Facts: It is very clear from the records that the Respondents had informed the Department all the processes undertaken by them vide letter dated The Commissioner Appeals in the impugned order has elaborately dealt with the facts and came to the conclusion that there was no suppression of facts for invocation of the extended period.

There is no merit in the appeal of the Revenue. Business Auxiliary Services — Commission agent: The predominant activity of the appellants is that of a commission agent.

During the relevant period, the appellants are covered by Notification No. This position continued till 9. After the amendment, the appellants were liable to pay Service Tax. They voluntarily registered for payment of Service Tax on They informed of their activities to the department. However, later revenue proceeded against the appellants on the ground that even for the period from 1st July to 30th June they were liable to Service Tax under the Business Auxiliary Services.

There is also no justification for invocation of longer period. In these circumstances, complete waiver of the pre-deposit is ordered Para 3,5. Commission paid to foreign agents: When the clarification was issued, it appeared that their activity would not come within the purview of production.

Consequently they did not pay the service tax on their activity, in spite of the fact that the registration had been taken.

It was very clear that with effect from Therefore with effect from They had a bonafide belief that their activity would not subject to service tax with effect from They had informed the Department all the processes undertaken by them in their letter dated Commissioner Appeals in the impugned order came to the conclusion that there was no suppression of facts for invocation of the extended period. Service of consignment agents: The show cause notice has subsequently brought out the valuation indicating the suppression of facts.

In any case, the appellants paid the service tax deposit. Appellant has not even made the copy of the contract available to the department. Prima facie, the appellants do not have a strong case. Receiving commission for the services rendered as sub agency: Both these pleas are required to be verified by the Original Authority and also the applicability of Notification No.

The prayer for remand of the case supported by the learned consultant is accepted. Customs House Agent CHA: On the above basis, for the present purpose, approx. The appellants have a case on limitation in respect of the entire demand for the period beyond the normal period of one year preceding the date of the show-cause notice.

Commission paid for sale of goods outside India: Even before the issue of the letter dated Therefore the question of invocation of Section 73 4 does not arise at all. The appellants in their letter dated In view of the above facts, it is very clear that the provisions of Section 73 3 would be squarely applicable and the Revenue ought not to have proceeded against the appellants by way of issue of show cause notice.

Hence the impugned order is not legal and proper. Service tax credit of tax paid as recipient of service: When the manufacturer takes credit of service tax paid under GTA services on incoming consignments, such credit can be utilized for paying the duty on the excisable goods manufactured by them and for paying the service tax on output services.

There being different opinions. Matter referred to Larger bench. Weighments of consignments in lorries and issues the slips recording the weight: Identical issue has been decided in favour of the party by the Tribunal in the case of CCE Chandigarh Vs.

As respondents are not concerned with the sale or marketing of the goods, therefore, cannot be said to be provider of incidental or auxiliary service to any activity such as promotion or marketing or sale of goods produced. Department has dropped the proposal to levy service tax in the category of BAS from the appellants in relation to the Mumbai Port.

If that be so, the Revenue cannot claim Prima facie case for enforcing the impugned demand of tax against the assessee at Chennai. The goods of particular brand are produced for particular party and supplied to that party, as per the contract. The applicants also cannot sell these branded goods in open market. Therefore, it is apparent that the applicants are producing goods for the client and are thus prima facie covered under BAS.

The activity of production of goods in question does not amount to manufacture in the Central Excise Act, and these are covered under MTP Act, What is excluded from the definition of BAS is 'manufacture' within the meaning of Central Excise Act,which prima facie would mean that it is only manufacture of goods liable to Central Excise duty, which would stand excluded from the purview of BAS.

The sale price of the goods consists of the cost of raw materials, cost of packing materials, cost of consumables, overheads and profit of the company. The value of taxable service under Section 67 of the Finance Act, can only be the amount assigned to the taxable services rendered and this can be the value received for conversion of input into final product.

Therefore, at least on this portion of the value, the service tax prima facie appears to be leviable. Applicants have not made out a strong case for the complete waiver Para 7,8,9. The discount cannot be considered as commission which requires to discharge the service tax. Stay Granted, predeposit waived. Received services in the category of 'Business Auxiliary Service' BAS from persons based abroad during the material period In case of services rendered from abroad to assessees in India, levy was imposed by enacting Section 66 A in the Act.

This Section was introduced with effect from Even though as per the explanation to clause of Section 65 introduced on Therefore, the impugned demand and accompanying penalties are not sustainable in law in view of a decision of the Tribunal in the case of CCE, Ludhiana Vs. Bhandari Hosiery Exports Ltd. It was said that the appellants paid service tax on the commission but not on the overriding commission.

As regards service tax on commission, there is no evidence on record except the evidence of payment of an amount of Rs. As regards overriding commission, service tax was not paid. The appellants were treated by the airlines as commission agents.

The question now is whether the amount collected by them from their clients [cargo owners] as consideration for arranging space in aircrafts belonging to the airlines is exigible to service tax to the extent such amount is over and above the amount paid by them to the airlines for such space. The appellants have not made out prima facie case against the demand of service tax on this differential amount.

The service provider did not have any office in India and such providers of service were made liable to pay service tax only w. The applicants have also submitted a couple of case law endorsing the above legal proposition.

It is submitted that in view of the above legal position, the appellants have paid an amount of Rs. Commission received from Bank for arranging loans. As respondents are not concerned with the sale or marketing of the goods, therefore, can not be said to be provider incidental or auxiliary service to any activity such as promotion or marketing or sale of goods produced.

What has been excluded from the definition of Business Auxiliary Services is 'manufacture' within the meaning of Section 2 f of Central Excise Act, which prima facie would mean that it is only manufacture of goods liable to Central Excise duty which would stand excluded from the purview of Business Auxiliary Services.

The next submission of the applicants that the goods produced by them attract sale tax and therefore cannot be treated as services to production of goods is a contentious issue and can be decided only at the time of final hearing of the appeal, and therefore no prima facie view can be expressed at this stage.

In respect of certain other categories such as bulk-breaking, the appellants seem to have failed to make out a prima facie case. The benefit of the aforesaid Notifications was denied on untenable grounds. After considering the submissions, there is a prima facie case for the appellants.

The issue is regarding the amount received by the applicant from the Franchiser: The agreement is franchisee agreement and in an identical issue in respect of Amalgamated Bean Coffee Trading, who gave an identical franchisee agreement to one of their client i. Rishi Enterprises in Appeal No. Since this case is also identical, the application for waiver of pre-deposit of the amounts is allowed Para 3. Pre-deposit Order as prima facie the Tribunal did not find merits in the appellants contention that establishment expenses being reimbursed to them by the company, that portion cannot be added for charging service tax on the business auxiliary service.

Appellant having been absolved of the tax liability, it could not be saddled with any penalty and therefore, on this ground alone, the impugned order of the Commissioner is fit to be set aside. Revenue contended that service of booking orders for foreign supplier for supply of goods in India, therefore, such service is not delivered outside India and also not used outside India. Tribunal observed that this aspect has not been considered by the adjudicating authority or the Commissioner, hence, the matter remanded back.

Explanation to Notification exempts only such commission agents, who cause sale or purchase of goods on behalf of another person. Service Received from outside India: The service provided by a service provider who has no office in India becomes taxable with effect from with insertion of Section 66 of the Finance Act with effect from He procures orders for his clients in India.

Facilitating purchase of motor vehicles: Besides selling the motor vehicles it also renders the services as Direct Selling Agent and Direct Marketing Agent for financial institutions like ICICI Bank, HDFC Bank etc. For facilitating purchase of motor vehicles, it receives service charges from such financial institutions.

The case of the Revenue is that the respondent is liable to pay Service Tax on the amount charged in lieu of such Business Auxiliary Service. Case remanded back with directions. Services rendered outside India are made liable to Service tax in view of Section 66A which has been inserted in the Service tax provisions of Finance Act, with effect from As, the applicants are providing service to National Highway Authority, in respect of Toll collection, keeping in view, facts and circumstances, it is not a fit case for total waiver of Service tax.

Appeal dismissed by the Commissioner A for non compliance under Section 35 of Central Excise Act. Matter remanded back to Commissioner Appeals. In absence of specific provision, the rate of tax applicable to the service tax: Services rendered outside India: Prima facie, the Apex Court has held that the service tax is not leviable for the service rendered outside India. The Board Circular supports this plea.

In any case, the service tax has been deposited before the issue of show cause notice. Hence the prayer for waiver of pre-deposit of the penalty amount is justified.

Appellants provide Business Auxiliary Service, they canvass customers for the Bank who would finance them for the purchase of vehicles. The Bank took an amount of Rs. Appellants discharged service tax liability on Rs. Prima facie case found to be strong. Appellants had also paid certain amounts which were treated as pre deposit and requirement to pre deposit the balance amount waived. Producing or processing of goods: Prima facie case for total waiver not made out.

Powder coating the furniture, electric panel boards, metal cabinets for UPS, stabilizers, etc. The appellants were not carrying out any marketing or sales promotion through advertisement or publication for bank. However, merit not examined by lower authority, matter remanded. The appellants entered into an agreement with the ICICI Bank to promote retail activities of the bank. They are under the franchise agreement with the ICICI Bank. Terms and Conditions of the agreement shows that the appellants has to promote retail finance of the bank.

Therefore, the appellants are providing the service of business auxiliary. Transportation of gas through Pipeline: The appellants only recover the cost of transportation from large customers for carrying gas from IOC and gas is purchased directly by such customers from IOC.

Aftersuch transportation through pipeline specifically included in the category of services for levy of Service Tax. Since they have not recovered any amount towards supply of the gas except for the transmission of the gas, prima facie case made out. Department treated the service under the category of Business Auxiliary Service. Appellants contested stating that it was Information Technology Service which was specifically excluded from the category of Business Auxiliary Service.

Tribunal found that matter was not decided by considering the contentions raised in the reply to the show cause notice and also as the order has been passed without giving personal hearing, there is gross violation of the principle of natural justice. Since issue covered by decision of Tribunal.

Exemption from service tax: Receipt of payment in foreign exchange: The purpose of Rule 3 2 of the said Rules is to earn convertible foreign exchange and then benefit of exemption of Service tax would be extended to the assessee. Service Tax paid prior to the issuance of show cause notice.

Original authority imposed penalty of Rs. There is no parallel provision to section 80 in Central Excise Act, Matter remanded for reconsideration. Full waiver granted on the contentions raised by appellants relating to limitation.

A composite cannot be vivisected has already been decided in the case of Daelim Industrial Co. The Chennai Bench in the case of Diebold Systems Pvt. Following the judicial discipline full waiver granted.

Revenue involved being more than Rs. The service recipient is resident abroad and has no office in India. Overriding commission received from airlines abroad.

Stay Application allowed conditionally.

The banks were clients being recipient of such services from the respondents. The respondents were required to obtain loan applications from their customers who desired to avail loans from the banks.

The respondents had undertaken to process those applications and after scrutiny forward them to the bank, for such services, they were paid commission by the bank, which was reflected in their account. If they chose to give some amount from that gross commission amount to their customers either directly or through the bank, it would not change the nature of the receipts in their hand.

Commissioner A not examined these facts. Collection of blood samples for principal do not fall under BAS. Technical testing or analysis in relation to human being or animals is excluded. Accordingly, stay partly granted. However, in regard to the services rendered by the appellants to the first class passengers, they were receiving consideration directly from the passengers albeit at the rate prescribed by the railways. In respect of this part of the service in question, the revenue is yet to establish that it is a 'customer care service provided on behalf of the client'.

The appellants have not succeeded in taking their service out of the purview of 'customer care service provided on behalf of the client', one of the business auxiliary services specified under section 65 Tax liability on commission paid to commission agent based abroad: The impugned order is supported by the legal provisions.

However, the case law cited supports the appellants' challenge to the demand and penalty. The dispute involved has to be resolved after listening to the detailed arguments of both sides. As the appellant has already paid the service tax demanded as also the interest, Para 4. Sale of Lottery tickets: As such those would not be goods within the meaning of the definition clause in the Sale of Goods Act.

If the lottery tickets are not goods, the writ petitioners cannot said to be rendering any service in relation to the promotion of their client's goods, or marketing of their client's goods, or sale of their client's goods. Accordingly for the demand prior to Service tax was discharged by the assessee before the department initiated any action. They have cited reliance on the Notification to claim exemption from Service tax. The Review Authority has imposed penalties.

Similar matters already listed. Matter listed with other matters for hearing. T exempted service provided under the category of Business Auxiliary Service for the period from July, to September, Expanded applicability of notification exempted services provided by appellants to customers of the Bank in relation to the services provided by the Bank to them.

Appellants brought within the category of Registrar and Share Transfer Agents from Revenue proceeded to demand Service Tax for previous period under the Business Auxiliary Service. The issue already decided by Tribunal in favour of appellants holding that such activity of transferring of shares and handling of shares would not come under the category of Business Auxiliary Services.

Business auxiliary service and Cargo handling service: Applicant is a transporter and receiving the goods booked for destination by other transporters and other transport agency is paying the service tax on the entire freight amount. In this situation, the applicants have a strong case in their favour.

Discount cannot be considered as commission. Prime facie case made out. Selling of sim cards: Prima facie, cannot be covered under the category of Business Auxiliary Service. The claim of the applicant regarding benefit of notification was not raised before the lower authority. The only issue raised before the lower authority was that they were only liable to pay service tax on the amount of commission which they actually retained and whatever passed on to their customers, is not liable for service tax.

It is not a case for waiver of pre-deposit of service tax. Sale of Lottery Tickets: Sale or promotional or marketing service: On a balance of circumstances it appears that the essence of the writ petitioner's business venture is that of a middleman, and if it is a middleman's venture, then the activity, properly so called, cannot but be promotion or marketing.

There will be no interim order. Service rendered outside India: Service tax not payable. The appellants are not actually promoting the business of GESCOM. The only service, which they render and which will come under the taxable net, would be billing. That may come under the 'Business Auxiliary Services'.

All other services, which they render, relate to 'Information Technology Service', which is excluded from the scope 'Business Auxiliary Services'. A large number of computers are supplied to GESCOM by the appellants and for the supply of these computers, printers and other hardware items, the appellants are receiving hiring charges. Moreover, they are also required to generate MIS reports and do a lot of data processing and generate very many reports.

These things would squarely fall under the purview of 'Information Technology Services', which would not be taxable presently. Only the billing activity rendered by the appellants would come within the purview of 'Business Auxiliary Services'. Therefore, matter remanded to the Original Authority for re-computation of the Service Tax liability by excluding the amount charged for hiring of the hardware and the amount charged for Information Technology Services.

While calculating the duty liability, gross amount collected for services should be treated as including the Service Tax.