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Fulchand Tikamchand Versus Commissioner of Central Excise & Customs, Nagpur

2016 (2) TMI 772 - CESTAT MUMBAI

Business auxiliary service - Appellant receives its brokerage from the borrower - principal agent relationship - period between 2005-06 and 2009-10 - Held that:- In view of an equation that is devoid of an agency relationship with the financier and rules out the provision of a service on behalf of the borrower from whom the appellant receives consideration, the activities of the appellant are outside the ambit of “business auxiliary service”. - Decided in favor of assessee. - Appeal No. ST/541/2 .....

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tax of ₹ 70,79,542/- as provider of business auxiliary service' for the period between 2005-06 and 2009-10 along with appropriate interest besides being penalized under section 76, 77 and 78 of the Finance Act, 1994. 2. The appellant claims that, as a broker, they have an empanelled list of potential financiers and that, on being approached by potential borrowers, the details of offering of these financiers are made available to those in need of finance. Thereafter, the potential borr .....

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onsider the merit of classifying the appellant as a provider of business auxiliary service' which is under challenge, it needs noting that other aspects of the proceedings have also been questioned by the appellant. It is contended that the show cause notice, as well as the adjudication order, display inexactitude by the ambivalent fitment of the activity of the appellant under alternative taxable services, i.e. as commission agent or as one who provides service on behalf of client. Here we .....

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onstitutional mandate to collect tax under authority of law is fulfilled and manifested only by determination of a unique rate of duty and appropriate taxable value. In the context of an enumerated list of specific taxable services, even a hint of hesitancy in identifying the service rendered will taint the bill. Even where the possibility of inclusion in no more than one entry exists, the law invariably prescribes the methodology for isolating the one that describes the activity most accurately .....

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commission agent while, at the same time, inclining to defer to rulings of this Tribunal in Commissioner of Central Excise vs. Samfin [2009 (19) STR 107 (CESTAT)] and in Auto World vs. Commissioner of Central Excise, Allahabad [2008 (12) STR 74 (Tri-Del)] as well as the clarification issued by the Central Board of Excise and Customs in circular no. 87/05/2006-ST dated 6 th November, 2006, opining that appellant undertakes services that are best described in section 65(19)(vii) of Finance Act,199 .....

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ation or development of prospective customer or vendor, public relation services, management or supervision….. A plain reading of the section, however, indicates that a commission agent is also deemed to be a provider of business auxiliary services' in addition to others who may be fitted in the seven sub-categories. 5. Learned Counsel for the appellant relies on the decision of this Tribunal in Interocean Shipping Co vs. Commissioner of Service Tax, New Delhi [2013 (30) STR 244 (Tri. .....

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earned Authorized Representative relies upon the decision of the Tribunal in Commissioner of Central Excise, Customs & Service Tax, BBSR-I v Sanfin [2009 (13) STR 551 (Tri-Kolkata)] and highlighted the finding in the impugned order that the activity of the appellant essentially furthers the business of the empanelled financier as an accessory in the negotiations and by issuing the memo of the interest to the borrower. 7. We have considered the rival contentions. 8. It is seen from the descri .....

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