Whether leasing out of tankers is chargeable to service tax under the category of “Banking and Financial Services”

In the present case (reported in 2007 -TMI - 1637 - CESTAT, CHENNAI - Service Tax) the assessee is the manufacturers of oxygen and nitrogen (both in gaseous and liquid forms). These chemicals are cleared from factory in cryogenic tankers. The appellants are possessed of such tankers which, when not required for their purpose, are leased out to other parties.

Honorable tribunal after considering the facts and circumstances, has found that Apparently this activity is not covered under "Banking and Financial Services" and granting stay or recovery pre-deposit of demand.