PAGARIYA AUTO CENTER Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE learned single Member (Judicial) of the West Zonal Bench of this Tribunal by the order dated 12.10.2012 has referred to a Larger Bench, the issue:

(2.) THE relevant facts in brief in ST Appeal No. 103/2010 (in which the order of reference was recorded) may be noticed. Revenue proceeded against the appellant/assessee by issuing a show cause notice dated 23.10.2008 proposing to levy service tax besides interest and penalties as indicated therein for having provided Business Auxiliary Service (B.A.S.) [denned in Section 65(19) of the Finance Act, 1994 (the Act), read with Section 65(105)(zzb)], during 01.07.2003 to 31.03.2008, by way of providing the business of banks/financial institutions, namely of providing loans to customers including by providing a space (to the banks/financial institutions) in the premises of the assessee. The assessee contested. After a due process, the proceedings culminated in the adjudication order dated 31.07.2009 which assessed a service tax liability of Rs. 5,86,848/ - besides interest and penalties as specified therein including penalty of an amount equivalent to the tax assessed, under section 78 of the Act. The adjudication order also appropriated Rs. 91,298/ -, remitted by the assessee during the course of proceedings.

(3.) IN the context of the core issue presented before the Tribunal, what is involved is a classification dispute, as to whether the transaction in issue, (between the assessee and the banking/financial institutions) falls within the fold of B.A.S., a taxable service defined under Section 65(19) and enumerated in Section 65(105)(zzb), as contended by Revenue or does not so constitute the specified taxable service, as contended by the assessee.