TMI Blog2013 (4) TMI 808X X X X Extracts X X X X X X X X Extracts X X X X ..... the investigation, the appellant vide letter dated 11.10.2007 submitted that they were not covered by the Business Auxiliary Service or by Business Support Service and they were collecting the expenses incurred by them from Group companies for smooth administration thereof. However, they paid ₹ 20 lakhs towards service tax under protest. They also informed the department, the details of category wise reimbursement of expenses received during the period from 1.7.2003 to 30.04.2007 and month wise details for the year 1.5.2006 to 30.9.2007. During the course of investigation, the Memorandum of Association of the appellant was obtained and it was found that as per the Memorandum of Association dated 28.08.1997 the main objects of the company included the one to carry on the business of vocation of acting as advisers and consultants, etc and to act as mutual benefit company by employing qualified, experienced personnel in the field of construction industry such as engineers, supervisors, architects, accountants, lawyers, personnel officers, finance managers, clerks etc for providing services of staff to group companies, concerns and members of the company on no profit/loss basis. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 23.10.2007 under Section 73(2) of the Chapter V of the Finance Act, 1994. (ii) I determine the Service Tax amounting to ₹ 1,45,13,152/- (Rupees one crore forty five lakh thirteen thousand one hundred fifty two only) under the notified category of Business Auxiliary Service' against M/s K. Raheja Real Estate Service Private Limited Construction House,- B, 2 nd Floor, 623 Linking Road, Klhar West, Mumbai 400 052, issued vide Show Cause Cum Demand Notice NO. ST/Mum/Div-III/Gr-III/99/07 dated 31.03.2009 under Section 73(2) of the Chapter V of the Finance Act, 1994. (iii) I determine the Service Tax amounting to 1,00,35,577/- (Rupees one crore thirty five thousand five hundred seventy seven only) under the notified category of Business Auxiliary Service' against M/s. K. Raheja Real Estate Service Private Limited Construction House,- B, 2 nd Floor, 623 Linking Road, Klhar West, Mumbai 400 052, issued vide Show Cause Cum Demand Notice NO. ST/Mum/Div-III/Gr-III/99/07 dated 26.02.2010 under Section 73(2) of the Chapter V of the Finance Act, 1994. (iv) I determine the Service Tax amounting to 65,85,904/- (Rupees sixty five lakh eighty five thousand n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, architects, accountants, lawyers etc. These employees from time to time work for a specific group company directly under the guidance and control of the management of each such group company. The entire cost incurred is on actual basis shared by the group companies which are engaged in the business activity of construction and development and no other economic benefit is envisaged in the entire arrangement. In these circumstances, there is no service provided to them. In support of their contention the appellant placed reliance on para 4 of the Board's Circular No. 120(a)/2/2010-ST dated 16.4.2010, which is as under: 4. The issue has been examined. As explained in para 2 above, the arrangement between the insurance company and the reinsurer is only sharing of expenses and there is no service provided by the insurance company to the re-insurer for a consideration. Since the policy holder may not even be aware of the operations of the re-insurer, it cannot be said that the payment made by the re-insurer to the insurance company is for its business promotion or a service on behalf of the re-insuring company (i.e. Business Auxiliary Service) . 4.2 The appellant also p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 04C). From the definition of the Support services of business it indicates that support services like processing of transactions for any client or providing infrastructural support is covered by the above definition of Business Support Service. The contention is that Business Auxiliary Service and Business Support Services are two apparently similar but separate taxing entries have been explained by the Board vided its Circular No. 334/4/2006-TRU dated 28.2.2006 issued after Budget 2006. From the above it is evident that Business Support Service is the entry applicable for any outsourced business services if services are not provided on behalf of any person. Assuming that appellant provides operational and administrative assistance to its constituent companies then at best it can be termed as Business Support Service with effect from 1.5.2011. 4.5 So far as valuation is concerned, the contention is that the Service Tax (Determination of Value) Rules, 006 were prescribed with effect from 19.4.2006 and simultaneously Section 67 of the Finance Act, 1994 was amended with effect from 18.4.2006 and therefore prior to 19.4.2006, the Valuation Rules did not apply. The contention is that ..... 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