Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2013 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (12) TMI 736 - AT - Service TaxDemand of service tax - Penalty u/s 78 - Business of issuing meal/gift coupon vouchers - Business Auxiliary Services - Whether meal vouchers issued by the assessee promotes sale of goods and services produced or provided by or belonging to the affiliates - Held that:- When a user/employee gets such meal vouchers from his employer (assessee's customer), the user has to look the list of affiliates and thereafter approach one of the affiliates of the assessee to buy goods and services. The user cannot approach any other entity or business establishment but to limit himself to the affiliates of the assessee. - such a scheme/restrictions viz. purchase of vouchers by employer and purchaser of goods and services by employee from affiliates itself promotes the sale of goods and services of the affiliates and therefore meal vouchers of the assessee definitely helps in promoting sale of goods and services of assesses affiliates. Meal voucher cannot be compared with credit/debit cards and cannot be called a payment system which is true for the debit/credit card. Vouchers are definitely not substitute for carrying cash as is the case with credit/debit card. In fact, in real life value of such meal vouchers is limited to two thousand per month per employee - Assessee have not been able to provide any evidence to come to the conclusion that the assessee were having a bonafide belief that they were not required to pay service tax during the period under Business Auxiliary Services. No attempt was made by the assessee to ascertain their tax liability from the department before the investigation started - Decided against the assessee. Classification of service - BSS or BAS - section 65A - Held that:- The introduction of new service did not bear any specific pattern or coverage to particularly sector. In Central Excise Tariff as also Customs Tariff, the classification is based upon scientific principle and pattern. Keeping in view the evaluation of various entries in the service tax, it is not unusual to find that a particular activity service may get covered by more than one entry/classification. - since the activities are more specifically covered under Business Auxiliary services as per Sec.65A(2), the same would be covered under Business Auxiliary Services. - the service can not be classified as Business Support service - Decided against the assessee.
|