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2012 (3) TMI 284 - CESTAT, MUMBAIIPO Financing Fees - demand confirmed against the applicants for IPO finance under the head "Business Auxiliary Services" on the activity undertaken where they are financing to their clients through Non Banking Finance Company which are sister concerns of the applicants and share the income of interest on revenue sharing basis - MOU between the applicants and the NBFC so as to arrange finance for the applicant's clients and to share the income earned from this activity after deducting the expenses - Held that :- As per the MOU, the applicants have agreed to compensate these NBFC's, if any demand arises thus have not acted as a commission agent, hence are doing business with these NBFC's on principal to principal basis and sharing their profits. Therefore, the applicants are not rendering any service under the category of "Business Auxiliary Services"- Processing fee - applicants are collecting money on behalf of the company who issues IPOs and deposit in a designated bank assigned by the IPO issuing company and banks shared interest earned by them with the applicants on money deposited - Revenue considered this activity of promotion of the business of the Banks and liable to pay service tax under the category of "Business Auxiliary Services" - Held that :- The amount of interest income which the bank shares with the applicant is not because applicant is promoting or marketing of any of the services provided by the bank and not liable to pay service tax - Recovery of Common expenses - expenses recovered by the applicants from the co-user of the premises on actual basis - Revenue considered such recovery under the category of infrastructural support service as the applicants are providing infrastructure support service to the co-user - Held that :- these activities are not covered under the "Business Support Services" as the applicants are paying the expenses incurred by them on all the premises and thereafter recovered from the co-user on actual usage basis - Complete waiver of pre-deposit of dues adjudged in the impugned order and stay recovery thereof during the pendency of the appeal
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