Client Referral income earned from banks & insurance co. is ‘Business Auxiliary Services’

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CESTAT, CHENNAI BENCH

TVS Motor Co. Ltd.

v.

Commissioner of Central Excise

Final Order No. 65 Of 2012

Appeal No. St/476/2009

Date of Pronouncement – June 13, 2012

 

Assessee was promoter and marketer of services of banks as well as insurance company, and was auxiliary in the chain of economic activity carried on by them. Assessee had accordingly provided “Business Auxiliary Service” to the banks as well as insurance company. Section 65(105)(zzb) read with section 65(19) of the Act warrants taxation of the consideration received by the assessee from banks and insurance company as business auxiliary service provider and the service so provided becomes input service for banks to provide the output service of banking and financial service as well as insurance service by insurance company. Thus, the business auxiliary service provided by the assessee was liable to be taxed