TMI Blog2017 (11) TMI 1400X X X X Extracts X X X X X X X X Extracts X X X X ..... tivities, the appellants are liable to pay service tax - demand upheld. Penalty u/s 76 and 78 - Held that: - Since we have already held that the appellant is not liable to pay service tax on the above such services, except for power plus cards for purchase of fuel, we are of the view that the imposition of penalties is unwarranted and requires to be set aside. Appeal allowed in part. - ST/334 to 338/2009 - Final Order Nos. 41971-41975/2017 - Dated:- 6-9-2017 - Ms. Sulekha Beevi C.S., Member (Judicial) Shri B. Ravichandran, Member (Technical) Shri J. Shankar Raman, Advocate for the Appellant Shri K. Veerabhadra Reddy, JC (AR) for the Respondent ORDER The issue involved in all these appeals being same, they were he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals) who vide the order impugned upheld the order passed by the adjudicating authority. Hence these appeals. 3. On behalf of the appellant, Id. Counsel Shri J. Shankar Raman submitted the details of the period involved, the claim of refund etc. as shown in the Table below:- Appeal No. Order in appeal no. Period Refund claimed Refund sanctioned Refund rejected ST/00334/2009 89/2008 1.10.01 to 30.06.03 8,61,195 1,51,916 7,09,279 ST/00335/2009 90/2008 1.4.03 to 1.12.03 11,42,426 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of TDS and its remittance, processing loan, maturity and foreclosure requests and generating loan/closure cheques. Handling the change of address requests, despatch and correspondence with regard to deposits with the depositor and other authorities relating to deposit, providing necessary MIS relating the deposit to the client, etc. b) Insurance Policy Processing Services: SBS undertakes back office data processing and Policy processing services from General Insurance Companies and Life Insurance Companies. It includes feeding the data and generation of handling nomination forms, Client data Base updation, handling returned policies, premium non premium endorsements, handling incomplete cases, handling payment files, filling a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner (Appeals) and the appellant was sanctioned refund in this regard to the tune of ₹ 1,51,916/-. 5. The Id. AR Shri K. Veerabhadra Reddy reiterated the findings in the impugned order. He submitted that the appellant was doing the activity of deposit processing services, insurance policy processing services etc. which are connected and auxiliary to 'Banking and other financial services' and would fall under Sl. No. 6 of the definition which reads as under:- Advisory and other auxiliary financial services including investment and portfolio research and advice, advice on mergers and acquisitions and advice on corporate restricting and strategy 5. That the definition is wide enough to cover any advisory and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chase of fuel. 8. It is also brought to our notice by the Id. Counsel that the adjudicating authority in appeal No. ST/ 335/2009, has imposed penalty of ₹ 12,74,785/- under section 78 and also penalty under section 76 of the Finance Act, 1994. Since we have already held that the appellant is not liable to pay service tax on the above such services, except for power plus cards for purchase of fuel, we are of the view that the imposition of penalties is unwarranted and requires to be set aside, which we hereby do. 9. In the result, the impugned order is modified to the extent of setting aside the demand of service tax on services other than issue of power plus card and also by setting aside all the penalties imposed. The appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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