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2018 (7) TMI 1220 - AT - Service TaxBusiness Auxiliary Service - respondents had tie up with various financial institutions like GE Countrywide, TVS Finance etc. for purchase of consumer durables from the show rooms; that in respect of customers who avail the loan facility from such financial institutions, the respondents receive incentives depending on the quantum of business provided through them - whether the service would fall under the category of Business Auxiliary Services or not? Held that:- To determine whether a particular activity would constitute “Business Auxiliary Service’, the Larger Bench in the case of M/S PAGARIYA AUTO CENTER VERSUS CCE, AURANGABAD [2014 (2) TMI 98 - CESTAT NEW DELHI (LB)], has held that “transactional documents and other evidence on record" should indicate that the substantial activity is falling within the contours of BAS - In the case before us, these tests have not been applied - Interests of justice require that the matter should be remanded for de novo consideration by the original authority to apply the tests laid down by the Larger Bench of the Tribunal - matter on remand - In such de novo proceedings, the adjudicating authority shall also look into the contention of the respondents that the proceedings per se are hit by limitation. Penalties u/s 77 and 78 - Held that:- The penalties are not warranted and is set aside. Appeal allowed by way of remand.
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