TMI Blog2007 (10) TMI 552X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the adjudicating authority have been challenged by the Revenue. 1.1 In Service Tax Appeal No. 239/2006, the adjudicating authority has confirmed the demand of Rs. 1,67,278/- being the amount of Service Tax not paid on the services rendered by the respondent under the head Business Auxiliary Service . The respondent-assessee had received commission from the Bank as per their balance-sheet for the period from July, 2003 to March, 2004 in connection with advancing loans to the customers of the assessee who wanted to purchase vehicles for which the assessee was the dealer. In this case, the assessee had not filed ST-3 Return of Business Auxiliary Service , though such registration was taken. According to the Revenue, the assessee had d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act and ordering payment of interest was set-aside. 2.1 In this case, the facts and nature of agreement are similar to the facts and nature of agreement involved in the Service Tax Appeal No. 239 of 2006, with a slight difference that, in this case the assessee had filed the return but only of the net amount i.e. after deducting a portion of the commission passed on to the consumers of the assessee for whom the assessee had arranged for the finance from the banks. 3. In Service Tax Appeal No. 241 of 2006, the Revenue has challenged the same impugned order of the Commissioner (Appeals) setting-aside the order-in-original made on 18-10-2005 confirming the demand of Rs. 3,87,941/-, appropriating the Service Tax of Rs. 2,04,604/-, and d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause (19). He drew our attention to the definition of Banking and other Financial Services under clause (12) of Section 65 of the Act and to Section 65(105)(zm), for appreciating the nature of services provided by a Banking Company or a Financial Institution to a customer. 5. The Appellate Commissioner has allowed the appeals of the assessees and set-aside the adjudicating orders mainly on the ground that, the Banks are not the clients of the assessees. In paragraph 10 of the impugned order, he refers to the definition of Business Auxiliary Services by observing that the tax is on the commission received from the client. It is observed that the assessees were not getting any remuneration or fees directly from the client and, therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory Banking and Other financial services falling in clause (12) of Section 65. In relation to those services, the respondent - assessees were providing services for promotion or marketing of the banking and other financial services provided by the banks. The banks were, therefore, their clients being recipient of such services from the respondents. It has come in evidence that the respondents were required to obtain loan applications from their customers who desired to avail loans from the banks. The respondents had undertaken to process those applications and after scrutiny forward them to the bank. Admittedly, for such services, they were paid commission by the bank, which was reflected in their account. Once consideration accrued to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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