Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2017 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 1497 - AT - Service TaxBusiness Auxiliary Services - commission agent service - demand for the period 1.7.2003 to 8.7.2004 - Held that: - When the activity of the appellant is to identify the customer through their web portal and receive the sale proceeds on behalf of the merchant and pay the same to the merchant, it does have same bearing to the definition of commission agent. The appellant cannot be found fault with if they believed bonafidely that they would fall within the definition - the demand for the period 1.7.2003 to 8.7.2004 is unjustified and requires to be set aside - demand for the later period upheld. Penalty u/s 78 - Held that: - appellant has made payment of service tax along with interest even before issuance of SCN as well as of the fact that the issue was an interpretational one and during the relevant period there was much confusion as to whether the said activity would fall within the Business Auxiliary Service or under internet advertisement services, which was introduced after 1.5.2006, the penalty imposed u/s 78 is unjustified. Appeal allowed - decided partly in favor of appellant.
|