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2015 (11) TMI 474 - AT - Service TaxDemand of service tax - Business Auxiliary service - Bar of limitation - whether the appellant is required to discharge service tax liability under the ‘Business Auxiliary Service’’ for the commission received by them from M/S Thomas Cook for the purpose of restricted money changing business in their premises - Held that:- Agreement is termed as an agency agreement and the appellants are appointed as an agent. The duties which have been cast upon the appellant are very clear that they should surrender the amounts collected in foreign exchange to M/s Thomas cook India Ltd. and in turn Thomas Cook will pay the appellant the amount equivalent in Indian rupees on the date of transaction and appellant will also get incentive on Indian rupee transaction, as per agreement. We find that the activity as is in transaction of the appellant would be covered under the category ‘Business Auxiliary services’, as the appellant is acting as agent of Thomas Cook, and it is very clear from the closure of agreement that appellant has been given restricted money exchange agency by Thomas Cook India Ltd. (from the authorization they have received for engaging in money exchange). - undisputedly appellant are acting as an agent of Thomas Cook India Ltd. We find that appellant has no case on merits. Appellant could have had a bona-fide belief that they are not liable to service tax under the category of ‘Business Auxiliary Services’. The service tax liability was first indicated by the officers of audit team. We find that the appellant has taken the point of limitation before the lower authorities but both the authorities did not record any finding, which leads to inference that the challenge on limitation is accepted. We also find that the appellant could not be faulted for any bona-fide belief that the amount received as incentive is taxable under the ‘Business Auxiliary Services.’ - Decided in favour of assessee.
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