The Tribunal examines whether the services provided by the OLSPs ...

Tribunal Rules OLSP Services Not Taxable as "Business Auxiliary Service"; Show Cause Notice Lacks Required Specificity.

February 29, 2024

Case Laws     Service Tax     AT

The Tribunal examines whether the services provided by the OLSPs to the Appellant fall under the category of "Business Auxiliary Service" as defined in the Finance Act, 1994. It concludes that since the OLSPs are not acting as agents of the Appellant, the services provided by them cannot be taxed under the specified category. - The CESTAT finds that the Show Cause Notice lacks specificity regarding the sub-clause of Section 65(19) under which the demand is raised. It rules that such a defect in the notice cannot be rectified by observations made by the adjudicating authority.

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