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2018 (12) TMI 1113 - CESTAT CHENNAIClassification of services - Business Auxiliary Service or not - rendering activities of collection of instalment / loan from the customers of the bank - time limitation - Held that:- Undisputedly appellants are acting in the capacity of collecting agents for ICICI Bank and they collect the dues payable by customers to such Banks on behalf of the Banks - As per the agreement dated 28.1.2005, the appellant has been appointed as mere collection agent. The agreement itself is named as ‘Collection Agreement’. The scope of the work is to act as collection agents of ICICI. Such activity would definitely fall under ‘Recovery Agent Service’. The demand under BAS for the period after 1.5.2006 therefore cannot sustain, the demand of service tax under BAS after 1.5.2006 is therefore set aside. Time Limitation - Held that:- Though the department alleges that the appellant is guilty of suppression of facts, there is no evidence brought forth as to what is the positive act committed on the part of the appellant. The various documents show that the appellants have furnished the entire documents as requested by the department. In fact, the demand has been quantified basing upon the document produced by the appellant. There is no case for the department that appellant had been maintaining parallel records so as to evade payment of service tax - the department has failed to establish suppression of facts with intent to evade payment of service tax so as to invoke extended period. The appellant therefore succeeds on the ground of limitation. Demand of service tax - reimbursable expenses - Held that:- The appellant has stated that these were expenses incurred by the appellant for obtaining demand drafts, courier expenses, travelling expenses etc. These are actual expenses incurred by the appellant which would fall under reimbursable expense - the demand on reimbursable expense cannot sustain and requires to be set aside. The impugned orders are modified to the extent of setting aside the demands on BAS prior to 1.5.2006 on the ground of being time-barred - After 1.5.2006, the demand is set aside since the activity does not fall under BAS - appeal allowed - decided in favor of appellant.
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