MAHESHWARI BAJAJ Vs. COMMISSIONER OF CENTRAL EXCISE, RAJKOT

JUDGEMENT

(1.) THE appellant is engaged in providing taxable service which is covered under the category of Business Auxiliary Service. The service tax of Rs. 1,53,643/ - stand confirmed against the appellant, on the findings that during the period from 1 -7 -03 to 31 -3 -06, the appellant had given space at their authorized service stations to various financial institutions such as ICICI, HDFC, Bajaj Auto Finance etc. and were receiving incentive/commission from them for referring the clients to them.

(2.) AFTER hearing both sides, I find that the appeal can be disposed off on the point of limitation. Admittedly, the show cause notice issued on 24 -7 -08 is beyond the normal period of limitation. The authorities below have invoked longer period of limitation on the ground that the appellant had not obtained service tax registration nor declared the value of the service. Accordingly, the Commissioner (Appeals) has held that non -declaring the particulars to the Department amounts to suppression of facts to evade tax liability.

(3.) LEARNED advocate has drawn my attention to the Boards Circular No. 87/05/2006 -S.T., dated 6 -11 -06. By taking note of the fact that there were certain doubts in respect of the activities undertaken by various motor vehicle dealers and service stations, the Board has observed that such promoting of market of financial institutions by the automobile dealers would be covered under Business Auxiliary service. As such, Board itself admitted that there was doubt, the benefit has to be extended to the appellant.