2009 (5) TMI 826 - AT - Service Tax

Profit earned on Foreign Exchange by the State Bank of Bikaner and Jaipur - taxability - Held that - Taxing on the profit earned on Foreign Exchange by Finance Act, 1994 is not the intention of legislature. Looking to the provisions of the law relied by the learned authority below provided by Section 65(105)(zm) and 65(105)(zzk), we are not at all convinced that the appellant-banker should be made liable to pay Service tax on foreign exchange - pre-deposit stayed during the pendency of appeal.

Summary

The Appellate Tribunal CESTAT New Delhi ruled in favor of the appellant, State Bank of Bikaner and Jaipur, stating that taxing the profit earned on Foreign Exchange under the Finance Act, 1994 was not the intention of the legislature. The tribunal directed a waiver of the pre-deposit during the appeal process.