2010 (8) TMI 196

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..... e, Advocate, for the Respondent. [Order]. - The Revenue has filed this appeal. 2. The facts of the case are that during the verification of the respondents Trail Balance, it was noticed that respondents have received a certain sum from the Bank on the account of recoveries made on their behalf from the farmers against the sugar cane supplied to them. The said amount received by the respon .....

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..... for recovery of bank loan from the farmers. The commission received by the respondents is liable to service tax under the category of 'Business Auxiliary Service' as they were rendering the service of collection of bank loans from the farmers. 4. On the other hand, the learned Advocate submits that it was their statutory obligations laid down by the Centre and State Government for recovery .....

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..... ich they have received is only handling charges or administrative expenses as rightly held by the Commissioner (Appeals) in the impugned order. As the Commissioner (Appeals) has rightly held that the activity undertaken by the respondent is not a 'Business Auxiliary Service', I do not find any reason to interfere with the same. Accordingly, the same is upheld and appeal filed by the Revenue is rej .....

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