2011 (2) TMI 864

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..... impression that since service tax was payable on the whole amount of processing fee by the Bank, no service tax was liable to be paid by them - The Commissioner (Appeals) taking note of the fact that the entire service tax stands paid before issue of show-cause notice upheld the demand without going into the limitation aspect - However, taking the facts and circumstances of the case, which involv .....

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..... is paid to the respondent as commission for their services. The department was of the view that the respondents rendered Business Auxiliary Services to the bank and, therefore, service tax was payable on the commission fee received by them from the bank. On being pointed out by the department, the respondent paid the service tax along with interest before April 2007. Show-cause notice dt. 9.10. .....

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..... considered the submissions and perused the records. The authorized signatory of the respondent during investigation has submitted that the commission received by them was out of the fee collected for processing of the loan by the bank. They were under the impression that since service tax was payable on the whole amount of processing fee by the Bank, no service tax was liable to be paid by them. .....

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..... nd the bank having paid the service tax on the entire amount he waived penalties imposed by the original authority under various Sections. 5.2 In the peculiar facts and circumstances of the case, the finding of the Commissioner (Appeals) that there was sufficient cause for invoking the provisions of Section 80 cannot be faulted. In this regard, relevant portion of his findings are reproduced bel .....

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..... , they have readily paid the service tax along with part payment of interest for belated payment and the same has been appropriated towards the demand and interest confirmed. It is seen that the above said error in understanding the provisions relating to impugned taxable services is a reasonable cause for failure of provisions contained under Section 76, 77 and 78 of the Act. 5.3 There is no e .....

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