2017 (1) TMI 1642 - AT - Service Tax

Classification of services - Banking and other Financial Services or not - Held that - Record reveals that the appellant was not a service provider but it was engaged in manufacture. Leasing its machinery was a solitary transaction and a temporary arrangement. Appellant was neither a banking company nor a financial institution nor engaged in providing financial services such as hire purchase, leasing finance, etc - the appellant not being a service provider of leasing as its principal activity, it was not a Banking and other Financial Service provider - appeal allowed - decided in favor of appellant.

Summary

The manufacturing appellant leased out machinery temporarily to M/s. Raghavendra Traders. The Department taxed this under "Banking and other Financial Services" entry. However, the appellant was not a service provider but engaged in manufacturing. The leasing was a solitary and temporary arrangement. The appellant was not a financial service provider. The appeal was allowed.