Business Auxiliary Service

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2010 Certain amount has been earned by way non-compete/ bid restraint? Dept. has sought service tax, alongwith interest, penalties treating it to be service under "business auxiliary service". Want to know about the case laws, with brief, if any.

Thanks

Shyam Lal Naik

Shyam Lal Naik (Expert)
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20 December 2010 Service tax law is strange. Stranger is the brain(or absence thereof) of our officers.

Is bid restraint a service?. Is the amount received for providing any service?

The action on the part of department is totally devoid of merit.

So far question of penalty is concerned, the department imposes penalty mechanically.