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2024 (4) TMI 235 - AT - Service TaxClassification of service - business support services or not - Guarantee Commission received for furnishing Corporate Guarantee - invocation of Extended period of Limitation - revenue neutrality - HELD THAT:- Sequentially in order to ascertain its eligibility for levy of tax it is important to understand the meaning of Corporate Guarantee as well. Corporate guarantee is the act of undertaking the responsibility of the debtor”s obligation, in this case, a company. The execution of Corporate Guarantee by the Appellant is merely an act of providing an instrument for securing loans and not even fundamentally connected to the services as described under Business Support services which includes those services to the tune of transaction processing, routine administration or accountancy, customer relationship management and tele-marketing which in its nature of extension includes those that are out sourced only to be interpreted within its scope for the purpose of levy of tax. Therefore, no merit can be found that the commission so received on such corporate guarantee by the Appellant will become eligible for taxation under the scope of Section 65 (104c) of the Finance Act, 1994. Extended period of limitation - Revenue Neutrality - HELD THAT:- The show cause notice dated 09.10.2012 has been issued for the period 08.02.2008 to 30.06.2012. The Appellant states that post audit of January 2009 they were not subjected to any adverse treatment by the Department as regards levy of tax on Corporate Guarantee based on the responses submitted to the Department for the queries raised in the said audit. All this goes on to show that the Appellant has not suppressed any facts with intention to evade tax payment. Therefore, the show cause notice issued invoking extended period cannot sustain. Appellant succeeds on limitation as well. The impugned order set aside - appeal allowed.
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