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2015 (4) TMI 429 - AT - Service TaxBusiness Auxiliary Service - Receipt of commission from the financial institutions/banks - Imposition of penalty and penalty - Held that:- assessee did not contest the issue on merits before the adjudicating authority. - appellant having not contested the issue on merits before the adjudicating authority, cannot do so before us Amounts which have been received by them from financial institutions/banks as commission are lump sum amounts and the said amounts, can be considered as cum tax amount and the service tax liability needs to be reworked. Claim of the appellant is correct and needs to be considered as cum tax amount; upholding the service tax liability has having been conceded before the adjudicating authority, we direct the lower authorities to rework out the service tax liability and the interest thereof. CBE&C vide Circular No. 87/05/2006-ST dated 06/11/2006 has clarified that the amounts received as commission from the financial institutions/banks would be taxable under BAS. The said board circular specifically states that there were certain doubts in the mind of the field formation and hence, reference was made. We are of the considered view that if the field formation or the tax collectors were themselves in doubt and clarification has to be issued by the Board and the period involved in this case being prior to 06/11/2006, the appellant has made out a case for invoking the provisions of Section 80 of the Finance Act, 1994; accordingly, we invoke the provisions of Section 80 and set aside the penalties imposed on the appellant - Decided partly in favour of Revenue.
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