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2016 (5) TMI 844 - AT - Service TaxBusiness Auxiliary Service - Arranging loans to customers from banks and thus promoting/marketing services provided by banks i.e Direct Selling Agent of the bank - Demand of Service tax along with interest and penalties - Held that:- appellant's argument that they have provided only space to the bank and therefore, their service is classifiable under ‘Business Support Service’ is not supported or backed by any evidence in the form of an agreement with the bank. Reliance on the judgment of Chambal Motors (P) Ltd. v. Commissioner of Central Excise, Jaipur-I [2007 (10) TMI 552 - CESTAT NEW DELHI] and Auto World Vs. Comm. of C.Ex., Allahabad [2008 (5) TMI 120 - CESTAT NEW DELHI(CESTAT)] does not favour the appellant. In the former case, it was held that Service Tax is payable on the commission received from the banks and, in the latter judgment it was held that the service rendered by the applicant falls under Business Auxiliary Service. Therefore, Service Tax is payable by the appellant. The plea that the demand is time-barred is not acceptable because there was suppression of facts regarding receipt of commission from the bank and, therefore, extended period of time is invocable. Benefit of exemption - Notification No. 6/2005 - Held that:- it is found that the Commissioner came to the conclusion that they are using a brand name which disentitles them from the benefit of the notification. It is also noted that there is no evidence on record to indicate that the total value of service provided by them apart from the value of services to the bank did not exceed the exemption limit. - Decided against the appellant
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