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2014 (6) TMI 659 - AT - Service TaxDemand of Service Tax - Business auxiliary services - to approach, discuss, inform, market and sell to various persons various vehicle finance schemes - whether in the nature of provision of Service on behalf of clients or promotion and marketing activities - exemption under Notifications Nos. 14/2004-ST & 25/2004-ST - penalties under Sec 76,77 and 78 - Held that:- Appellants service are not covered under the scope of ‘provision of services on behalf of the clients’, the benefit of the said exemption Notifications is not available to them.. Agreement between M/s. TFL and the Appellants is so clearly worded regardings the activities to be carried out by the Appellants that it leaves no scope for any ambiguity whatsoever, leave alone the ambiguity even remotely amenable to the interpretation that their services did not fall under the category of promotion and marketing and/or that they were providing services to the potential loan seekers on behalf of Ms. TFL and not to M/s. TFL. Levy of penalty - Held that:- Obviously, the Appellants deliberately chose not to pay Service Tax and then sought to justify their action by trying to put fourth an interpretation which is so grossly untenable and devoid of any basis that no reasonable person even with the fullest sympathy with the Appellants would buy their contention. They did not even take Service Tax registration and so obviously also did not file any Service Tax returns. In these circumstances their plea that it was a matter of interpretation is totally untenable. Consequently, there is no infirmity with regard to the Appellants liability to penalty which is patently leviable on them - Decided against assessee.
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