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TMI Blog2011 (1) TMI 598X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal. 1.2. Appeal No.ST/559/07 is by M/s.Galaxy Data Processing Centre against the revision order of the Commissioner No.04/JP-II/2007-Sevice Tax dt.24.7.07, by which the order of the original authority no. dt.14.6.06 was revised by imposing a penalty of Rs.4,89,420/-. 1.3. In another words, the appeal No.ST/59/07, the cross objection No.277 of 2008 and the appeal No.ST/375 of 08 emanated from the order of the original authority dated 14.6.06. 2. Appeal No.ST/375 is by M/s. Business Information against the revision order of the Commissioner by which order of the original authority dt.27.7.07 which dropped the proceedings initiated against them was set aside and the order was revised confirming the demand of service tax along with intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hnology service which is not included under the category of business service accordingly set aside the order of the original authority. The department is in appeal against the said order of the Commissioner(A) setting aside the order of the original authority confirming the demand and imposing penalty. Meanwhile, the commissioner issued notice dated 12.0.07 (sic) proposing imposition of penalty under section 76 of the Finance Act as well. He accordingly passed the order dated 24.12.07 by which he imposed penalty of Rs.4,89,420/-. The party is in appeal against this order. 4.2 The relevant facts of the case relating to the appeal ST/375/08 filed by Information processing services is as follows: The appellant undertook works for M/s.,JVVNL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 08 (87) ELT 325 (CESTAT-Bang) (b) CCE, Hyderabad vs. Deloitte Tax Services India Pvt.Ltd. reported in 2008 (11) STR 255 (Tri.-Bang.) (c) M/s.Cognizant Technology Solutions India Pvt.Ltd. vs. Commissioner, LTU, Chennai. 6. Ld SDR reiterates the finding and reasonings of the Commissioner in his orders in revision. 7.1. The definition of "business auxiliary services" which came into effect from 1.7.2003 before and after 1.5.06. are as follows; Before 1.5.2006 The "Business Auxiliary Service" means any service in relation to, - (i) promotion or marketing or sale of goods produced or provided by or belonging to the client; or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e by the client;] (v) production or processing of goods for, or on behalf of the client; or (vi) provision of service on behalf of the client; or (vii) a service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi), such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, public relation services, management or supervision, and includes services as a commission agent, but does not include any information technology and any activity that amounts to "manufacture" within the meaning of clause (f) of section 2 of Central Excise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as they do not have any contact with the customers of their clients and are not issuing the bills directly to the customers of their clients. The work of data processing using custom made software deserves to be considered as Information Technology Services. 7.3 As, during the period prior to 1.5.2006, the definition clearly exclude the Information Technology Services from the ambit of "Business auxiliary services" the activities undertaken by the assessees are not taxable under the category of "Business auxiliary services". 8. In view of the above, a) Appeal No.ST/375 by M/s. Business Information against the revision order of the Commissioner confirming the demand of service tax along with interest and imposing pena ..... X X X X Extracts X X X X X X X X Extracts X X X X
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