9911796707
TMI Blog2011 (2) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices is leviable only on Lease Management fee/ Processing Fee and documentation charges and on the finance/ interest charges and not on the principal amount. Inasmuch as, admittedly the service tax stands confirmed on the entire principle amount, we set aside the impugned order and remand the matter to original adjudicating authority for quantifying the service tax, in terms of the above circul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing provided by them. For the above proposition learned advocate relied upon Para 2.1.2 and 2.1.3 of the Board circular being F. No. B.11/1/2001-TRU dated 09.7.2001. He submits that if only the actual value of the services being provided by them is taken into consideration, in terms of the said circular, the amount of service tax would become down considerably. 3. After hearing the learned DR, we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs a unique number. 2.1.3 The EMIs consist of recovery of principal amount (towards the original cost of the equipment) and finance /interest charges. The allocation between the principal and the finance/interest charges are known to and agreed upon by both the parties. The customer repayment schedule contains the details of the EMIs with the break up for the principal and the interest. In respe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nto the agreement) and on the finance/interest charges (recovered in equated monthly installments) and not on the principal amount. As is seen from the above, service tax in case of Financial Leasing Services is leviable only on Lease Management fee/ Processing Fee and documentation charges and on the finance/ interest charges and not on the principal amount. Inasmuch as, admittedly the service t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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