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2009 (9) TMI 94 - AT - Service TaxTaxable and nontaxable services - had advanced amounts to employees of various Government departments to finance purchase of consumer durables and two wheelers. The said activity is hire purchase finance, held to be not exigible to service tax by various judicial authorities including the Apex Court and Tribunal - We hold that the service tax demand in relation to the business of hire purchase finance is not sustainable. Moreover, as noted by the Commissioner in the impugned order, the demand is based on financial accounts of the assessee. We find that service tax is leviable only on the taxable value realized. A major portion of the taxable value is on account of interest charge realized which in any case could not have validly formed part of taxable value since interest on loan was not taxable as per Section 67 of the Act as it existed at the material time - We also find force in the submission by the learned Counsel that commission received as insurance agent is not liable to service tax - In the light of the clarification issued by Ministry in its letter F. No. B.11/1/2002-TRU, dated 1-8-2002 stated supra, the claim of the appellants that the commission received on sale of consumer durables and two wheelers was exempted during the material period also deserves to be considered since the material period is prior to 7-6-2005 when the exemption to Business Auxiliary Service relating to sale or purchase of goods was withdrawn. In fine, we find that the impugned order has confirmed demand without examining the liability of the appellants to service tax in relation of various activities involved in the light of the legal provisions and clarifications issued by CBEC and Ministry of Finance. Accordingly, we set aside the impugned order and remand the matter to the Commissioner for a fresh decision
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