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2015 (6) TMI 49 - CESTAT NEW DELHIWaiver of pre deposit - business auxiliary service - distributor or marketing agent of M/s Amway India Enterprises Pvt. Ltd. - Held that:- While prima facie the service rendered by the appellant clearly fell under the scope of business auxiliary service, it is seen that CBEC vide Circular No. 80/10/2004-ST dated 17.9.2004 stated that while the scope of the existing taxable service (viz. business auxiliary service) has been expanded to include activities relating to procurement of inputs, production of goods (not amounting to manufacture), provisions of services on behalf of a client, the tax is leviable only when the service provider is a commercial concern. - circular further clarify that "service tax is however being restricted to only those cases where the service provider is a factory governed by the Factory Act, 1948, the company established by or under the Companies Act, 1956 or corporation or a body corporate established by or under any law, partnership firm, societies registered under Societies Registration Act, 1860 or under any law and any cooperative society established by or under any law - appellant had a reasonable basis to presume that they being an individual would not be covered for the purpose of levy of service tax. We must clarify that Board's circulars do not have any legal enforceability and are mere administrative interpretations of law but when the policy making body [CBEC] itself considered individuals to be outside the purview of taxability under business auxiliary service, it cannot be sustainably alleged that an individual was guilty of suppression/mis-statement if he thought alike. Thus, prima facie, the entire demand is hit by time bar. - Stay granted.
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