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2015 (7) TMI 891 - AT - Service TaxDemand of service tax - Business Auxiliary Services - benefit of exemption Notification No 13/2003-ST dated 20.6.2003 - held that:- Adjudicating Authority vide Order dt 31.8.2006 in first appeal observed that in terms of the different clauses of the agreements, the appellants were providing after sales service in relation to the equipments sold to the clients within the appellants territory, installation, maintenance, care etc., of such equipments which are major components of the services, to be rendered by the appellant to the client. In fact, the payment of service charge to the appellant is depending on the appellants satisfactorily discharging after sales service components of the agreement. Pertinently, all these components of services are covered under Business auxiliary Services (BAS) in their own right and covered under Clause 3 (iii) and (iv) of the definition of BAS. Clause 3(iii) and (iv) of the definition of BAS provides any Customer Care Service provided on behalf of the client or any incidental or auxiliary support service such as billing, collection or recovery of cheques/accounts and remittance, evaluation of prospective customer and public relation service. The show cause notice dtd 1.9.2004 was issued for the period 1.7.2003 to 31.3.2004 proposing demand of tax under the category of BAS. But, the second show cause notice dtd 21.10.2004 was issued for the period October 1999 to June 2004 proposing the demand of tax under the category of C&F agent for the same activities, rendered by the appellant. The facts of the case in both the adjudication orders are contrary and misconceived. - findings of both the adjudicating authorities are contrary on facts and law of the case, which cannot be improved by letter dtd 18.5.2015 of the Joint Commissioner of Central Excise, Customs and Service Tax. In our considered view, the Adjudicating Authority should have decided both the show cause notices together and after determining the facts of the case in proper manner, the classification of the service would be decided. It should be noted that reasons are the links between the materials on which certain conclusions are based and the actual conclusions. So, both the impugned orders cannot be sustained. - Decided in favour of assessee.
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