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M/s. Indian Hotels Co. Ltd. Versus Commissioner of Central Excise

2015 (11) TMI 474 - CESTAT MUMBAI

Demand of service tax - Business Auxiliary service - Bar of limitation - whether the appellant is required to discharge service tax liability under the ‘Business Auxiliary Service’’ for the commission received by them from M/S Thomas Cook for the purpose of restricted money changing business in their premises - Held that:- Agreement is termed as an agency agreement and the appellants are appointed as an agent. The duties which have been cast upon the appellant are very clear that they should s .....

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of agreement that appellant has been given restricted money exchange agency by Thomas Cook India Ltd. (from the authorization they have received for engaging in money exchange). - undisputedly appellant are acting as an agent of Thomas Cook India Ltd. We find that appellant has no case on merits.

Appellant could have had a bona-fide belief that they are not liable to service tax under the category of ‘Business Auxiliary Services’. The service tax liability was first indicated by the o .....

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/150 & 650/11-Mum - Final Order No. A/2538/2015-WZB/STB - Dated:- 15-7-2015 - Mr. M.V. Ravindran, Member (Judicial) And Mr. Raju, Member (Technical) For the Petitioner : Ms. Aparna H. Advocate. For the Respondent : Shri S.R. Nair, E.O. (AR) ORDER Per: M.V. Ravindran: 1. This appeal is directed against order-in-appeal no. GOA/CAS/GSK/117/2010 dated 3.12.2010. 2. The issue involved in this case is whether the appellant is required to discharge service tax liability under the Business Auxiliary Ser .....

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covered under the service tax net, as commission received is chargeable to tax under Business Auxiliary Services. 3. Learned counsel would take us through the order-in-original, the impugned order and the agreement entered by the appellant with the said M/s Thomas Cook. It is her submission that the period involved in this case is 2006 07 to 2008 09. She would submit that the appellant is in the hospitality industry and as required under the law needs to cater to the foreign tourist, it is mand .....

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is the submission that such activity of the appellant is nothing but purchase and sale of foreign exchange and an amount received by them an incentive from Thomas Cook is nothing but discount and hence not taxable under business auxiliary services. It is her submission that subsequently, the law provided to discharge of service tax liability on this activity from 16/05/2008 by the amendment to the banking and other financial services. She would submit that the amounts received from Thomas Cook .....

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ervice tax liability. It is her submission that appellant has already discharged the service tax liability and interest thereof. On limitation, it is her submission that appellant, could have entertained a bona-fide belief that they were are not in the business of money exchange but that being incidental to the main activity no service tax liability arises. Hence the demands which have been raised beyond the extended period of limitation are liable to be set aside. 4. Learned departmental repres .....

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the interest and imposed penalties. It is the submission that since the appellant did not indicate the amounts received by them as commission and on investigation it was noticed that amounts were received, extended period has been correctly invoked. 5. We have considered the submissions made by both sides and perused the records. On perusal of the agreement entered by the appellant with Thomas Cook India Ltd. we find that this agreement is termed as an agency agreement and the appellants are a .....

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