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2019 (1) TMI 1439 - AT - Service TaxClassification of services - Business Auxiliary Service or not - service in respect of sale of insurance products for and on behalf of M/s. Maruthi finance to the buyers of vehicles from M/s. Maruthi Udyog Ltd. - Held that:- The issue is decided in the case of M/S. AVG MOTORS LIMITED, M/S. INDUS MOTOR COMPANY PVT. LTD. VERSUS THE COMMISSIONER OF CENTRAL EXCISE, CUSTOMS AND SERVICE TAX [2017 (10) TMI 502 - CESTAT BANGALORE], where it was held that The appellants are doing the service of promotion or marketing of service viz., issuance of insurance policies on behalf of MIBL. The fact that service tax was being paid by MUL to the insurance company along with the insurance premium will not make any difference, when the assessee-appellants are independently providing the service of promotion or marketing, which is covered by ‘Business Auxiliary Service’ as defined in Section 65(19) of Finance Act, 1994 read with Section 65(105)(zzb) of Finance Act, 1994. Penalty - Held that:- Further, the Tribunal has dropped the penalty on the ground that the subject matter involved relates to interpretation issue - following the same, the penalty is dropped. Appeal allowed in part.
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