TMI Blog2017 (10) TMI 502X X X X Extracts X X X X X X X X Extracts X X X X ..... tly providing the service of promotion or marketing, which is covered by Business Auxiliary Service - the assessee-appellants are liable to pay Service Tax on the services performed by them to M/s. MIBL, a fully owned subsidiary of MUL. Penalties - Held that: - the subject matter involves interpretational issues in respect of law of service tax on the subject, the penalties imposed on the appellants are not sustainable. Decided partly in favor of appellant. - ST/253, 277, 278/2006-DB - Final Order No. 21855 - 21857 / 2017 - Dated:- 1-9-2017 - Shri S. S. Garg, Judicial Member And Shri Ashok K. Arya, Technical Member Mr. Ricab Chand, Advocate For the Appellant Mr. Parasivamurthy, AR For the Respondent ORDER Per : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x liability of ₹ 30,11,793/- along with interest and imposition of equivalent penalty was confirmed against them. The appellant went in appeal against the Order-in-Original before Commissioner (A), who reconfirmed the demand of Service Tax along with interest and imposition of equivalent penalty. (v) Therefore, both the appellants are before this Tribunal. The subject matter being common, these appeals are being taken up together for decision. 3. All the parties have been heard. 4. After having carefully considered the facts of the case and the submissions of both the sides, it appears that the matter is covered by the Tribunal s decisions in the cases of Ved Automotives vs. CCE, Kanpur: 2016 (44) S.T.R. 140 (Tri.-All.); C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are liable to pay Service Tax on the services performed by them to M/s. MIBL, a fully owned subsidiary of MUL. 4.2 In this regard, CBEC has also issued Circular No.87/05/2006-ST dated 6.11.2006 where inter alia the following issue/question has been mentioned. (d) Whether the commission received by the automobile dealers from Banks /Non Banking Financial Companies (NBFC), for introducing the customers seeking finances / loans to such banks / NBFCs is to be subjected to service tax Further, in case part of these incentives are passed on by the dealers to the customers, whether tax would be leviable only on that part of incentive, which is retained by the dealers or whether it would be on full amount This question/issue has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12. Facts and evidence aforesaid when tested on the touchstone of Section 65(105)(zzb) read with Section 65(19) of the Act that warrants taxation of the consideration received by the appellant from banks and insurance company as business auxiliary service provider and the service so provided becomes input service for banks to provide the output service of banking and financial service as well as insurance service by insurance company. Thus, the business auxiliary service provided by the appellant during the impugned period was liable to be taxed and that has rightly been done in adjudication without calling for interference in this appeal. 4.4 Considering above discussions and following the ratio of the Tribunal s decision (supra), the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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