TMI Blog2024 (4) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... the Appellant is merely an act of providing an instrument for securing loans and not even fundamentally connected to the services as described under Business Support services which includes those services to the tune of transaction processing, routine administration or accountancy, customer relationship management and tele-marketing which in its nature of extension includes those that are out sourced only to be interpreted within its scope for the purpose of levy of tax. Therefore, no merit can be found that the commission so received on such corporate guarantee by the Appellant will become eligible for taxation under the scope of Section 65 (104c) of the Finance Act, 1994. Extended period of limitation - Revenue Neutrality - HELD THAT:- T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued show cause notice based on an investigation undertaken by DGCEI, Ahmedabad zonal unit demanding service tax on the Guarantee Commission received by the Appellant by classifying it under the head of Business Support Services. The demand has been confirmed by the Adjudicating Authority vide Order in Original No. SUR/EXCUS/001/COM 063 13 14. Hence the present appeal. 1.1 The following two issues are involved in the present appeal : - i. Whether service tax is liable to be discharged on the Guarantee Commission received for furnishing Corporate Guarantee under the heading business support services. ? ii. Whether the Department has correctly invoked an extended period of limitation against the Appellant? 2. Shri Kartik Dedhiya, Learned Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ingredients of Section 73 in order to invoke extended period of limitation. 3. Shri Rajesh K. Agarwal learned Superintendent (AR) appearing on behalf of the Revenue reiterates the findings of the impugned order 4. Heard both the sides and perused the records. The main issue in the present case is whether the Corporate Guarantee provided by the Appellant falls under the category of Business Support Services . 4.1 For this we need to analyse the entry business support services . Section 65 (104c) is reproduced below: Support Services of Business or Commerce means services provided in relation to business or commerce and includes evaluation of prospective customers, telemarketing, processing of purchase orders and fulfilment services, informat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntre Services . It is proposed to tax all such outsourced services. If these services are provided on behalf of a person, they are already taxed under Business Auxiliary Service. Definition of support services of business or commerce gives indicative list of outsourced services. Circular DOF No. 159/10/2012 ST dated 19.06.2012 The services of CAG are also not covered by the heading Business Support Services specified in clause (zzzq) of section 65. When the business support services were taxed for the first time in the year 2006, the TRU circular stated as follows : Business entities outsource a number of services for use in business or commerce. These services include transaction processing, routine administration or accountancy, customer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding/execution any such activity that has been outsourced by the Appellant taking into consideration the extended application of the said definition under Section 65 (104c) of the Finance Act, 1994. The tribunal takes support of M/s Sterlite Industries India Ltd vs. Commissioner of GST and Central Excise 2019 TIOL 879 (CESTAT MAD) the relevant para has been extracted below:- The corporate guarantee that was entered into by appellant is only for the limited purpose of securing loans to its subsidiaries. Corporate guarantees are issued in order to safeguard the financial health of their associate enterprises and to provide it support. For banks, providing bank guarantee is part of their regular course of business and they charge rate on the h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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