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TMI Blog2013 (4) TMI 240X X X X Extracts X X X X X X X X Extracts X X X X ..... ing credit cards purchase goods from shops and the bank pays to the shop keeper on their behalf. Till the customers pay up the money to the bank, they are debtors and they stand in the shoes of borrowers. If that be the case, the amount transacted is a “loan” and interest must accrue to the bank in the event of delay in repayment thereof. In this scenario, the legal provisions cited by assessee be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ven only) demanded for the period from April, 2005 to March, 2010, interest thereon and penalties. The impugned demand of service tax is under the head, Credit Card, Debit Card, Charge Card or other payment card service, defined under Section 65(33a) read with Section 65(105)(zzzw) of the Finance Act, 1994. The appellant-bank paid service tax under the said head in respect of the payments collec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 16-7-2001 to 10-9-2004. An amendment of Section 67 added interest on loans to the excluded category under Section 67 w.e.f. 10-9-2004. This legal position continued up to 18-4-2006. The exclusion of interest on loans from the taxable value under Section 67 came to be incorporated in Rule 6 of the Service Tax (Determination of Value) Rules, 2006 w.e.f. 18-4-2006 and this legal position is stil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the legal provisions cited by the counsel may not be applicable. 2. After giving careful consideration to the submissions, we are inclined to agree with the point made by the learned counsel. The bank s customers holding credit cards purchase goods from shops and the bank pays to the shop keeper on their behalf. Till the customers pay up the money to the bank, they are debtors and they stand in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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