TMI Blog2018 (12) TMI 1113X X X X Extracts X X X X X X X X Extracts X X X X ..... y Agent Service’. The demand under BAS for the period after 1.5.2006 therefore cannot sustain, the demand of service tax under BAS after 1.5.2006 is therefore set aside. Time Limitation - Held that:- Though the department alleges that the appellant is guilty of suppression of facts, there is no evidence brought forth as to what is the positive act committed on the part of the appellant. The various documents show that the appellants have furnished the entire documents as requested by the department. In fact, the demand has been quantified basing upon the document produced by the appellant. There is no case for the department that appellant had been maintaining parallel records so as to evade payment of service tax - the department has fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vity would fall within the category of BAS as defined under Section 65(105)(zzb) of Finance Act, 1994. Show cause notice dated 21.4.2010 was issued for the period 2004 05 to December 2009 10 (December 09) proposing to demand service tax on the amounts received from ICICI bank under BAS. A further demand was also made being service ax on reimbursable expenses. The said show cause notice was adjudicated by the Commissioner who confirmed the demand along with interest under the category of BAS after granting cum-tax benefit. The demand on reimbursable expenses was also confirmed. The Commissioner also imposed penalties. A further show cause notice dated 20.4.2012 was issued for the period October 2010 to March 2011 demanding service tax on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en though the department had received this letter on 11.11.2005, they failed to give any clarification to the appellant. He thus argued that the appellant did not pay service tax on the bonafide belief that the activity is not subject to service tax and had no intention to evade payment of service tax. The show cause notices issued invoking extended period cannot sustain for the reason that the appellant has furnished all details when requested by the department and has not suppressed any facts. The ld. counsel adverted to the letters submitted by the appellant to the department. Whenever the documents were called for, the appellant has furnished the entire documents. The non-payment of service tax under the BAS was only due to the bonafide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ri. Chennai) had set aside the demand for the extended period. He therefore strongly argued that the demand for the extended period and the penalties may be set aside. 3. The ld. AR Shri K. Veerabhadra Reddy supported the findings in the impugned order. He submitted that the appellant was engaged for recovery of the defaulted dues from the customers. The said activity falls under BAS. The contention of the appellant that the said activity is not taxable is without any basis. Merely because ICICI bank refused to pay service ax, the appellant cannot escape from the liability to pay service ax. The appellant has suppressed the facts with intention to evade payment of service tax and therefore the demand raised invoking extended period is le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dor, public relation services, management or supervision, and includes services as a commission agent, but does not include any activity that amounts to manufacture of excisable goods. 5.2 It is his argument that such recovery agent services have been bought under the recovery agent service with effect from 1.5.2006. The relevant definition of Recovery Agent Service is as under:- Taxable service means any service provided or to be provided to a banking company or a financial institution including a non-banking financial company or any other body corporate or a firm, by any person, in relation to recovery of any sums due to such banking company or financial institution, including a non-banking financial company, or any other body c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y whether the activity is subject to levy of service ax. They have intimated the department that ICICI bank has refused to pay service tax stating that it is not a taxable activity. The department has not responded to this letter of the appellant. However, the show cause notice for the period from 2004 05 to 2009 10 has been issued only on 21.4.2010. Further, it is seen from the receipts that the ICICI bank has not paid service tax. The Commissioner has quantified the liability of service tax after giving cum-tax benefit. The appellant had not been paying service tax only for the reason that they were under the bonafide belief that the said services are not subject to levy of service tax. Even after seeking clarification from the depart ..... X X X X Extracts X X X X X X X X Extracts X X X X
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