2012 (7) TMI 255

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..... ice" means any service in relation to :- (i) promotion or marketing or sale of goods produced or provided by or belonging to the client; or (ii) promotion or marketing of service provided by the client; or (iii) any customer care service provided on behalf of the client; or (iv) procurement of goods or service which are input for the client; or (v) production or processing of goods for or on behalf of client (vi) provision of service on behalf of client; or (vii) a service incidental or auxiliary to any activity specified in sub-clause (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 custome .....

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..... Business Auxiliary Service and service tax is payable in this service. 4. The activities carried out as above squarely falls within sub-clause (iv) of section 65(19) of Finance Act, 1994. When the appellant procured goods as input for the State of Madhya Pradesh. Therefore, the primary activity of issuance of Smart Card with readable chip falls in that category of service. There is no legal infirmity in the adjudication order. 5. Heard both sides and perused the records. 6. We have tried to find out scope of activity carried out by the appellant. The scope enumerated hereinabove is apparent from page 7 of the paperbook. Therefore, we looked into the functional specifications appearing in para 2 of the agreement which brings out that the .....

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..... was spelt out in agreement dated 09.10.01 is to build a system. Revenue also fails to get helping piecemeal reading of the law without proving that the services provided by the appellant was auxiliary in nature to serve the purpose of business of client. By no stretch of imagination, building a system can be conceived to be "Business Auxiliary Service". We have occasion to go through para 52 of the judgement of Hon'ble High Court of Delhi in the case of Home Solutions reported in 2011(33)STT95/13 Taxman 188 (Del.) where the service tax jurisprudence has been laid down by the Hon'ble Court on consideration of rulings of Apex Court on the subject. The same is re-produced for the reading : 52. From the above pronouncements in the field, the f .....

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