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TMI Blog2011 (1) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... al services - Appeal is allowed - ST/27/2008 - ST/111/2011 - Dated:- 20-1-2011 - Archana Wadhawa, M Veeraiyan, JJ. For Appellant: Shri Shekhar Vyas, Adv. For Respondent: Shri Fateh Singh, SDR Per: M Veeraiyan: This is an appeal against the order of CCE (Appeals) by which the order original authority demanding service tax amounting to Rs.82,215/- alongwith interest stands upheld. 2. Heard both sides., 3. The relevant facts, in brief, are that the appellants are engaged in providing banking and financial services. The dispute relates to an amount of Rs.8,06,059/- collected on account of premium on pre-payment of direct loans from their customers 1.9.04 to 31.3.06. The original authority in pursuance of SCN dt.26.12.06 co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se by a body corporate; (ii) credit card services; (iii) merchant banking services; (iv) securities and foreign exchange (forex) broking; (v) asset management including portfolio management, all forms of fund management, pension fund management, custodial depository and trust services, but does not include cash management; (vi) advisory and other auxiliary financial services including investment and portfolio research and advice, advice on mergers and acquisition and advice on corporate restructuring and strategy; and (vii) provision and transfer of information and data processing: 1. The taxable service, as per section 65(72)(zm) means any service provided, to a customer, by a banking company or a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -banking institution or class of such institutions, as the Bank may, with the previous approval of the Central Government and by notification in the Official Gazette, specify." 7. The authorities below have not indicated as to which category of the definition the activity foreclosure falls under. Foreclosure is ending the loan already given and cannot be treated as lending to the customers of loan, and in our considered opinion the same cannot be treated as rendering any services by the financial institution. We agree with the learned advocate that it is a case of withdrawing the services rendered, at the request of the customers, and the foreclosure premium is a kind of compensation for possible loss of interest revenue on the loan amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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