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2017 (1) TMI 610 - AT - Service TaxBusiness Auxiliary Services - loan fee for arranging loans - brokerage for enabling distribution of IPO - reimbursable expenses - Held that: - as regards loan fee, examining the scope of service rendered by the appellant, we find this category has no connection to such services. There is neither an advisory role nor auxiliary financial service with reference to investment etc. We further note that the impugned order mentioned about “other financial services” which were added under the category of BOFS only w.e.f. 18.04.2006. Even such “other financial services” appear to have no application to the present case. Regarding the brokerage fee, we find the same cannot be covered under Business Auxiliary Service during the relevant time. The services “Registrar to an issue” and “share transfer agent” more appropriately deal with the services rendered by the appellant. These taxable services were introduced only w.e.f. 01.05.2006 whereas, the demand in the present case is for the period prior to that date - since the tax liability under BAS itself is found to be not tenable, the inclusion of reimbursable expenditure for such tax does not arise. Demand set aside - appeal allowed - decided in favor of appellant.
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