COMMISSIONER OF CENTRAL EXCISE Vs. LOAN ZONE

JUDGEMENT

(1.) REVENUE is in appeal against the impugned order wherein the learned Commissioner (Appeals) has dropped the demand of Service tax against the respondent under the category of Business auxiliary services holding that activity undertaken by the respondent does not fall under the business auxiliary services and on the ground that respondent is entitled for the benefit of notification No. dated 1.3.2005.

(2.) The activity undertaken by the respondent is that they are identifying prospective clients to take loans from the service recipient i.e. LIC Housing Finance Co. and to submit application to their client, thereafter after verification, examination of the prospective person intending to take loan submits its report to their client i.e. LIC Housing Finance. Revenue is of the view that the said activity falls under the category of Business Auxiliary services particularly in clause (1) and (7) of Business Auxiliary as defined under Section 65(19) of the Finance Act, 1994. Therefore, the respondents are providing services under the category of Business Auxiliary services and are liable to pay Service Tax. It is also the contention of the Revenue that as, for providing services, recipient is using brand name of LIC Housing Finance, therefore, they are not entitled for exemption under notification No. . In these circumstances, Revenue filed appeal before this Tribunal.

(3.) HEARD the parties. Considered the submissions.