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2018 (6) TMI 856 - AT - Service TaxClassification of Services - Business Auxiliary Service or Recovery Agent Service - appellant was a proprietary concern and was functioning as outsourcing agency for banks/ financial institutions - case of appellant is that they are not a commercial concern and therefore being an individual is not liable to pay service tax during the relevant period, prior to 1.5.2006 - Time Limitation - Held that:- In the present case, though appellant is a proprietary concern cannot be said that it is not a commercial concern. The name of the appellant itself reflects that it is not an individual but a commercial concern. The activity of the appellant herein is not solely or merely verification of credentials of prospective customers but appellants were also engaged in other activities like preparation of invoices / Bills, collection / recovery of installments from the defaulters / borrowers of the bank etc. These activities are nothing but providing incidental or auxiliary services to HDFC Bank in collecting the overdue installments etc. from the customers of HDFC and would definitely fall within the ambit of Section 65 (19)(iv) of the Finance Act prior to 10.09.1994 and Section 65 (19) (vii) after 10.09.2004 - the activities of the appellant would constitute BAS during the period of dispute and not recovery agent‟s service. Extended Period of Limitation - Held that:- The appellants had been providing these services from the period from which BAS was brought into the tax net, i.e. w.e.f. 01.07.2003. However, they did not discharge service tax and had suppressed the value of such services with intent to evade tax - even after taking registration on 02.04.2004, appellants did not pay service tax or file returns disclosing the value of these services provided by them - extended period rightly invoked. Appeal dismissed - decided against appellant.
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