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2014 (3) TMI 653 - AT - Service TaxDemand of service tax on fee for pre-closure of loans - Business auxiliary service - Suppression of facts - Held that:- Revenue’s contention is that the National Housing Bank with which the appellant is associated collects pre-closure charges from the appellant along with the service tax component and the National Housing Bank remits service tax (for an unspecified taxable service) and the appellant avails Cenvat credit on the service tax component remitted to the National Housing Bank, together with the pre-closure fee charged by National Housing Bank. In the circumstances, the appellant must be presumed to be aware of its liability to service tax on the consideration/charges received by it from its customers, i.e. on pre-closure of loans. Since Revenue concedes the position that the transactions in issue do not amount to business auxiliary service and since there is no allegation of the appellant having provided any other taxable service, we fail to comprehend this contention and as to how the appellant’s presumed knowledge of its tax liability on fore-closure charges received, would render it liable to service tax, for being provided Business Auxiliary Service, which is admittedly inapplicable - Decided in favour of assessee.
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