AUTO WORLD Vs. CCE

JUDGEMENT

(1.) LEARNED Advocate submits that the appellants were arranging loan on behalf of financial institutions and receiving commission thereon. He submits that there was doubt regarding levy of tax on commission received by the automobile dealers which was clarified by the Board's Circular No. 87/05/2006 -S.T. dated 06.11.2006. He further submits that in the month of July, 2003 Business Auxiliary Services were introduced for payment of tax on promotion of business. He also submits that as soon as it came to their knowledge, they voluntarily paid the tax in the month of December, 2004 for the period July, 2003 to December, 2004. By show cause notice dated 30.2.2006 tax was demanded to the tune of Rs. 90,783/ - and to appropriate the amount, which the appellants already deposited in December, 2004 and also to impose penalty under Section 75A, 76, 77 & 78 of the Finance Act, 1994. He also submits that the balance amount of tax was deposited before issue of the adjudication order. Therefore, penalty imposed under Section 75A, 76, 77 & 78 of the Finance Act, 1994 are not sustainable. He relied upon the following decisions of the Tribunal:

(2.) LEARNED D.R. reiterates the findings of the Commissioner (Appeals). He submits that tax was levied in July, 2003. They have not obtained registration under service tax law during the relevant period. He also submits that the fact of regarding taxable service by the appellant was not disclosed. He also submits that on inquiry the Central Excise officers detected the fact of non -payment of tax.