TMI Blog2008 (2) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... received from financial institutions - as there was no finding on arrangement which existed under the agreement as to whether in reality any commission was being passed on the bank or directly given to customers, matter is remanded - ST/330/2006 - ST/44/2008(PB) - Dated:- 19-2-2008 - Justice S.N. Jha, President and Shri M. Veeraiyan, Member (T) [Order per: Justice S.N. Jha, Preside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nancial institutions. The case of the Revenue is that the respondent is liable to pay Service Tax on the amount charged in lieu of such Business Auxiliary Service. Indeed, the respondent paid Service Tax on a part of the amount received as service charge. Show cause notice was issued to the respondent for payment of Service Tax on the whole amount of service charge and the demand was confirmed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 963 (CESTAT-Del.). He in particular invited our attention to Para '6' of the judgment which reads as under :- "6. It is obvious from the reasoning adopted by the Commissioner (Appeals) that he has proceeded on totally an erroneous footing that a bank cannot avail of 'Business Auxiliary Services' as a client. From the nature of agreements on record including the franchisee agreement in the thir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocess 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 them, as against the services provided by them to the bank, by way of commission, it was hardly of any consequence how a portion of that commission, which as per the particulars provided by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat stage? 5. Prima facie , the facts of the case Chambal Motors , were almost similar to the facts of this case and therefore conclusion of the Commissioner (Appeals) in the impugned order cannot be sustained and the matter has to go back for fresh decision on merit in the light of the decision in Chambal Motors case. 6. The impugned order dated 29-11-05 is accordingly set aside ..... X X X X Extracts X X X X X X X X Extracts X X X X
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