TMI Blog2018 (12) TMI 1537X X X X Extracts X X X X X X X X Extracts X X X X ..... r of burden of discharge to the service recipient within section 68 of Finance Act, 1994 is specific and limited without scope for extending beyond the few transactions listed in rule 2(d)(i) of Service Tax Rules, 1994. The Central Board of Excise and Customs, vide instruction no. 137/21/2011-ST dated 15th April 2013, has clarified, in the context of certain levies under Finance Act, 1994, which had a reference to some other laws for the purpose of definition that the scope of such indirect definitions would not extend beyond the specific content of those definitions. It is, therefore, reasonable to surmise that the claim of the Learned Authorised Representative that the Finance Act, 1994 has been aligned entirely with the Insurance Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,70,415/- paid to these allegedly unlicensed insurance agents for the period from October 2008 to March 2011 under section 73(1) of Finance Act, 1994, along with interest thereon, and proposed appropriate penalties. The impugned order held that the tax liability would arise only on services rendered by such persons as were licensed in accordance with section 42 of Insurance Act, 1938 which the Lead generators were not. Hence this appeal of Revenue. 3. We have heard Learned Authorised Representative and Learned Counsel for the respondent and perused the record. 4. According to Learned Authorised Representative lead generators are nothing but insurance agents and they were imparted with the training and technical knowledge i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncerning life insurance business by an intermediary or insurance and that intermediary is defined in an inclusive, not exhaustive, enumeration, he argued that there is no escapement from tax liability irrespective of nomenclature or designation. He contends that the adjudicating authority had erred in ignoring the general doctrine that an assesee cannot be permitted to take advantage of a law to contravene any other law; in the present case, the respondent has deliberately attempted escape from coverage under the Insurance Act, 1938 and, by such contravention, cannot claim benefits under the provisions of Finance Act, 1994 thus offering justification for invoking of the extended period in section 73 of Finance Act, 1994. 5. Learned Couns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were under the bonafide belief that service tax is not payable by them on reverse charge since the lead generators are not insurance agents . He further submitted that as per proviso to Section 73(1) the demand for extended period can be raised for a period of five years from the relevant date, but in their case the show cause notice was received by them on 24.04.2014 i.e. after the expiry of five years from the relevant date. According to him, since the show cause notice has been issued subsequent to 23.04.2014 and with even part of the demand of ₹ 13,90,64,526/- for the period from October 2008 to March 2009 being beyond the extended period, the same was liable to be set aside. 6. We find that the tax liability in the show c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gulatory and Development Authority Act, 1999. Insurance Act, 1938 is very clear as to the scope of coverage in the definition of insurance agent ; such insurance agents are indeed deployed by the respondent in the present dispute. It must be borne in mind that the Act of 1938 was enacted to regulate the insurance business as it subsisted in those days, which continue to be so for decades. With the opening up of the insurance sector to nongovernmental promoters, the business model altered substantially and certain other links in the channel of distribution was brought into existence. The contentions of Revenue in their oral submission is that all these are insurance agents and hence the sovereign legislature adopted that definition with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 68 of Finance Act, 1994 is specific and limited without scope for extending beyond the few transactions listed in rule 2(d)(i) of Service Tax Rules, 1994. The Central Board of Excise and Customs, vide instruction no. 137/21/2011-ST dated 15th April 2013, has clarified, in the context of certain levies under Finance Act, 1994, which had a reference to some other laws for the purpose of definition that the scope of such indirect definitions would not extend beyond the specific content of those definitions. It is, therefore, reasonable to surmise that the claim of the Learned Authorised Representative that the Finance Act, 1994 has been aligned entirely with the Insurance Act, 1938 is too farfetched for us to place reliance upon. 10. For th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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