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TMI Blog2007 (10) TMI 392X X X X Extracts X X X X X X X X Extracts X X X X ..... on 78 of the Finance Act 1994 and also imposing the penalty of the like amount under Section 76 of the Act, besides the penalty of Rs. 1,000/- under Section 77 of the Act and demanding interest under Section 75. 2. The Revenue noticed that the respondent-assessee were providing 'Business Auxiliary Services' without getting registered and were not paying service tax due on the services provided by them. They were providing 'Business Auxiliary Services' by way of processing loan applications for commercial vehicles obtained by their sales/marketing representatives. They were then processing the applications and after scrutinizing them were forwarding the same to the bank. In cases where the loan applications were approved, they were ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ub venting), bank debits the said account of the appellant by the said amount of incentive crediting the account of the customer and there after calculation of MEP is fixed. Thus the incentive is paid to the customer and balance amount is received as consideration for the services so rendered." 3.1 The adjudicating authority found that, the respondent- assessee facilitated the buyers of the vehicles in seeking loans from the bank by bringing them into contact with the bank. They made available prospective customers to the bank and the banks were paying fixed percentage of the loan amounts to the dealers for facilitating the marketing of financing. The adjudicating authority also referred to the clarification issued by the Board by its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... including evaluation or development of a prospective customer. Under Section 65(105)(zzb) taxable service means, as defined at the relevant time, service provided to a client by a commercial concern in relation to 'Business Auxiliary Services'. The words 'a commercial concern' have been substituted by the words 'any person' w.e.f. 18-4-2006. However, since at the relevant time, the expression 'a commercial concern' was used for identifying the taxable entity who provided the services in relation to 'Business Auxiliary Services', we are required to consider the correctness of the finding of the Commissioner (Appeals) that a sole-proprietor was not covered in the expression 'commercial concern'. 6. There can be no dispute over the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not gone into the merits of the case including the dispute regarding the quantum, and the question whether, the consideration received should be treated on value-cum-duty basis. He was also required to give a finding on the respondent's defence about a portion of the commission having been passed on to the loanees by the bank at the instance of the respondent and also to consider the nature of agreements reached in that context by the concerned parties. 8. For the foregoing reasons, the impugned order is set aside and the matter is remanded to the Commissioner (Appeals) for considering it afresh and deciding the same in accordance with law and in the light of the observations made in this judgment. The appeal is accordingly allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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