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2013 (11) TMI 1503 - AT - Service TaxWaiver of pre-deposit - Stay application - Business Auxiliary Service - Commission remitted by the petitioner in foreign currency for facilitating export of cotton, rice, cashew and sesame claimed to be agricultural produce by the petitioner - Corporate bank guarantee - Held that:- Notification No.8/2004-ST amended several earlier exemption Notifications including Notification No.13/2003-ST. Under this Notification, inter alia, Notification No.13/2003-ST was amended to introduce an additional clause in the Explanation to the earlier Notification No.13/2003-ST. The scope of the primary exemption granted was also restricted. Under the earlier Notification No.13/2003-ST, business auxiliary service provided by commission agents was exempted from the liability to tax. By Notification No.8/2004-ST, the exemption was restricted to business auxiliary service provided by commission agents in relation to sale or purchase of agricultural produce. 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. is not entitled to the benefit of exemption Notification No.8/2004-ST, is unsustainable. - stay granted on this issue. Regarding demand of service tax on corporate guarantee commission - held that:- Singapore corporate entity was neither a Bank nor had provided a bank guarantee. It provided a guarantee on the basis of its own resources assets to Indian banks to facilitate lending of money by Indian banks to the petitioner. This would not, in our considered view, constitute bank guarantee within the meaning of the said expression in Section 65(12) of the Act - provision of corporate guarantee clearly falls outside banking or financial services. however it would be falling under "Business Support Services" (BBS) - entire amount of service tax with interest directed to be deposited - stay denied
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