Case Law Details
Infinity Credit Consultants Vs Commissioner of Service Tax (CESTAT Delhi)
CESTAT Delhi held that maintenance charges towards the maintenance of documents and towards the security of documents by keeping the same at the premises of the appellants is rendering of service of ‘Maintenance, Management or Repair Service’ and hence demand confirmed.
Facts- The Appellants are engaged in providing taxable services under the category of ‘Business Auxiliary Services’ to M/s ICICI Bank. Department observed that they have received total amount of Rs. 1,02,12,656/- for the year 2006-2007 to 2010-2011 as commission received from M/s ICICI Bank holding that the commission was against providing the ‘Business Auxiliary Services’, to the bank, the service tax of Rs. 16,19,972/- was observed to not have been paid by the appellants.
Department also observed that appellants have received some income as legal and professional charges, however, the tax liability thereupon has not been discharged. The department while forming the opinion that the said activity of providing legal and professional consultancy is nothing but a ‘Business Support Services’ for the banks/financial institutes, the service tax liability was questioned. In addition, appellant was also observed to have received maintenance charges for the financial year 2009-2010 and 2010-2011. Observing those services as a consideration towards providing taxable service under category of ‘Management, Maintenance or Repair Service’, that the appellant was observed liable to discharge the service tax liability.
Accordingly, a show cause notice was served upon the appellants proposing the recovery of service tax Rs. 15,71,705/- towards providing ‘Business Support Service’, Rs. 40,745/-service tax towards ‘Management, Maintenance or Repair Service’ and Rs. 7,522/- as short paid on commission income. In addition, appropriate penalties u/s. 76, 77 and 78 of the Finance Act, 1994 were proposed and proportionate interest was proposed to be recovered.
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