9911796707
|
Home
Issues involved: Interpretation of the definition of 'banking and other financial services' under Section 65(12) of the Finance Act, 1994 in relation to leasing activities carried out by commercial concerns.
Summary: The Revenue filed appeals against four sugar manufacturing units for leasing out their factory, claiming it falls under 'banking and other financial services' u/s 65(12) of the Finance Act, 1994. The Commissioner (Appeals) allowed the appeals, leading to the Revenue's appeal before the Tribunal. The main issue was whether leasing activities by commercial concerns fall under the definition of 'banking and other financial services' as per Section 65(12) of the Finance Act, 1994. The Revenue contended that the modification in the definition to include 'commercial concern' should cover the respondents' activities. The Tribunal referred to previous decisions and the definition of 'banking and other financial services' during the relevant period. It was noted that the ownership transfer and risk-bearing aspects of leasing were crucial in determining financial leasing. The Tribunal also cited a circular clarifying the taxability of financial leasing charges. In a similar case, the Tribunal held that leasing activities by a public limited company did not constitute financial services, emphasizing the need for the company to be engaged in lease finance to be liable for Service Tax. The Tribunal found no merit in the Revenue's appeals and dismissed them based on precedent. Therefore, the Tribunal dismissed the Revenue's appeals, emphasizing that the respondents were not engaged in lease finance activities to be considered as providing financial services under Section 65(12) of the Finance Act, 1994.
|
