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2013 (4) TMI 18 - AT - Service TaxWaiver of Pre-deposit U/s 76 and U/s 78 of the Finance Act, 1994 - service for mobilizing to mutual fund distributors and receiving commissions - Business Auxiliary Services - jurisdiction - Held that:- In the case of levy of Service Tax it is difficult to ascertain where the services are rendered and where the services are received unless a finding is recorded on these facts. We agree with learned A.R. (Commissioner) that it becomes a mixed question of facts and law and should have been raised before the Commissioner during the course of adjudication - Such issues could be considered only after a detail deliberation on the place of receipt of services and/or place of delivery of services whereas presently we are examining the impugned order and issues involved on a prima facie basis. Therefore the case laws referred by the Ld. Advocate are not relevant at this stage On the issue of applicability of service tax - Held that:- We find that the applicants are rendering their services to the distributors of the various mutual fund companies and not to the Mutual Fund Companies directly hence prima facie we are of the opinion that they are not strictly covered under the said principle of levy of service tax under reverse mechanism as laid down under Rule 2(1)(d)(vi) and applicable to mutual fund distributors of Mutual Fund Companies. On the issue of limitation -Held that:- We find that the adjudicating authority has given a cogent finding on the aspect of applicability extended period of limitation which is again a mixed question of facts and law and needs detail analysis which could be made at the time of hearing of the appeal. Guidelines laid down by the Hon’ble Supreme Court and other Hon’ble High Courts from time to time including that of Hon’ble Andhra Pradesh High Court in Shri Chaitanya’s case (2011 (1) TMI 356 - HIGH COURT ANDHRA PRADESH ).We direct the applicant to deposit 25% of the Service Tax confirmed against them within a period of Eight Weeks from today and report compliance on 1st of May, 2012. On deposit of the said amount, the balance amount of Service Tax, penalties imposed stand waived and its recovery stayed during the pendency 1st of the appeal.
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