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2016 (11) TMI 641 - CESTAT MUMBAIConfirmation of tax levied on commissions from banks and financial institutions - restoration of penalties - ‘business auxiliary service’ - reliance placed on the decision of case of South City Motors Ltd v. Commissioner of Service Tax [2011 (11) TMI 408 - CESTAT, NEW DELHI] where it was held that the entries for “Business Auxiliary Service” and “Business Support Service” have different objects. After the introduction of the new entry, there can be argument as to which entry covers the activity more appropriately - The Higher Courts have been taking the view that in such situations the extended period of time cannot be invoked for raising demand. Held that: - the impugned order has erred in setting aside the tax demand of ₹ 20,72,830/- for providing ‘business auxiliary services’ under section 65 (105) (zzb) of Finance Act, 1994. However, that amount has been paid before the issue of show cause notice. It is settled by the above decisions that the lack of clarity in the tax leviable under section 65 (105) (zzb) would detract from the liability to be imposed with penalties under the Finance Act, 1994. We find that the present issue is also one such. Tax on commissions from banks and financial institutions confirmed - penalties set aside - appeal disposed off - decided partly in favor of Revenue.
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