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2018 (8) TMI 102 - AT - Service TaxBusiness Auxiliary Service - Levy of Service Tax - Agency Commission - Corporate Guarantee Commission - Held that:- The definition of ‘Business Auxiliary Service’ is very wide and it covers all the activities which promotes business of clients. The services detailed under clause iv of Section 65 (105) (zzb) of the Act made taxable from 10/09/2004 - the nature of corporate guarantee as well as of bank guarantee is one and the same i.e. for facilitation of the lending facilities - The copies of the said debit notes clearly indicate the transactions with regard to lending facilities in India and therefore through Corporate Guarantee Commission the appellant are chargeable to Service Tax. And the commission paid was taxable under ‘Business Auxiliary Service’. Merely because the name of the guarantee has been changed from ‘Bank’ to ‘Corporate’ it cannot be said that it won’t fall under ‘Business Auxiliary Service’ as defined under Section 65 (105) of the Finance Act, 1994 - demand of Service Tax on the Corporate Guarantee Commission upheld. Agency Commission - benefit of N/N. 13/2003-ST dated 20/06/2003 (as amended) - Held that:- This notification exempts Service Tax payable on Commission Agent Services in relation to agricultural produce. The lower Authorities have not extended the benefit while taking the view that the committee rice is not covered under the said notification but in the case of Kohinoor [2017 (3) TMI 1289 - CESTAT NEW DELHI], the Tribunal has taken the view that commission paid for export of rice to Commission Agents will be entitled to benefit of the Notification, particularly in view of the Circular issue by the Board dated 26/05/2011 - the demand for Service Tax on Agency Commission set aside. Appeal allowed in part.
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