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2022 (2) TMI 737 - HC - Service TaxClassification of services - Business Auxiliary services or not - Government company formed with the object of developing tourism and infrastructure related to it and running Palace on Wheels - can be charged of rendering business auxiliary service on account of realizing felicitation fee from the empaneled showrooms/Emporia’s, which was required for avoiding fraud, cheating, and to protect the foreign and domestic tourist? - HELD THAT:- The term business auxiliary service has been defined in Section 65 (19) of the Finance Act, 1994 as to mean, besides others, promotion for marketing or sale of goods produced or provided by or belonging to the client. The tribunal assessed the factual situation and came to the conclusion that the activity amounted to marketing of the goods for sale. The stand of Tribunal is agreed upon. The agreement between the shop owners and the assessee provided that the shop owner would pay facilitation fees per season to the corporation on the condition that the tourist buses of the corporation would stop at the showroom of the shop owners for the purpose of shopping by the tourist travelling in palace on wheels. It was thus a clear case of promotion of sale of the goods of the shop owners or the showroom owners, as the case may be. Appeal dismissed.
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