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TMI Blog2009 (7) TMI 579X X X X Extracts X X X X X X X X Extracts X X X X ..... be correct. On the other hand, the argument of the assessee that the service essentially fall under cash management service under clause 12 of section 65 appeared to be correct. Therefore, these appeals were dismissed by upholding the order of the Tribunal canceling the assessment on the assessee for the service rendered by it until 31.5.2007. - 4, 6, 11 AND 13 OF 2009 - - - Dated:- 27-7-2009 - C.N. RAMACHANDRAN NAIR AND C.K. ABDUL REHIM, JJ. Tojan J. Vathikulam and Abraham Thomas for the Appellant. Joseph Kodianthara and Terry V. James for the Respondent. JUDGMENT C.N. Ramachandran Nair, J. - The common question raised in the connected appeals filed by the department against the order of the Customs, Excise and Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause (12) was deleted with effect from 1-6-2007 and thereafter respondent bank is remitting service tax including for cash management service which covers bill collection for the companies referred above. 2. We have heard Standing Counsel appearing for the appellants and counsel appearing for the respondent bank. On going through the Tribunal's order we notice that the Tribunal has held that services rendered by the respondent in the form of collection of bills and remittance of the same to their clients namely BSNL, Airtel, etc., are not a business auxiliary service. The Standing Counsel submitted that, the Tribunal's finding is fallacious because clause (97) specifically provides for collection of bills, for recovery of cheques ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of receivables, execution of payment, management of liquidity and providing customized Management Information System (MIS) reports, provided by banks to clients such as corporate clients. From the above it is clear that the service of collection of receivables is a cash management service rendered by a banking company. In fact cash management service remained excluded for the purpose of levy of service tax until it is deleted through an amendment with effect from 1-6-2007. Prior to the deletion clause (12) was covering the following services : (12) 'banking and other financial services' means (a) the following services provided by a banking company or a financial institution including a non-banking financial company or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a broad sense cash management services is also a business auxiliary service. However the question is which is the more appropriate charging provision under which the Respondent Bank's service would fall. In order to examine this we have to refer to the definition of business auxiliary service also and for this purpose clause (19)(vii) defining 'business auxiliary service' is extracted hereunder. a service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi), such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, public relation services, management or supervision. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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