9911796707
TMI Blog2014 (11) TMI 334X X X X Extracts X X X X X X X X Extracts X X X X ..... nk and also Acquiring Bank. Card business consists of two components - Card Issue & Merchant Acquiring. Under card issue, banks issue cards to their customers. These cards are used for cash withdrawal at ATMs and also at merchant establishments (M.Es) for purchase of goods / services. Whenever a card holder purchases goods / services from the MEs, the ME accepts the card for the same by swiping the card through an electronic machine (EDC). On acceptance of the transactions, a charge slip is generated by the EDC on which the customer needs to sign as acceptance of the same. The ME retains one copy of the charge slip with them in order to encash the same from his banker. On presenting these charge slips to the bank (called as acquiring bank), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ady suffered service tax. Demand of service tax and collection of the same from the appellant would result in double taxation of the same service at the hands of two banks. 4. Learned A.R., on the other hand, drew our attention to paragraphs 15.3.5 and 15.4 wherein the Commissioner has reached the conclusion that the appellant is liable to pay serviced tax. It was submitted by learned C.A. that the Commissioner in paragraph 15.3.5 has compared the activity of the appellant to the transaction between VISA / Master Card and the Bank wherein under the reverse charge mechanism, the appellant is paying tax whereas in this case, they are not paying the same. 5. We find that in paragraph 15.3.5, observation is available and for better appreciati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ped in a machine in the merchant establishment for verification, the issuing bank would verify and whether the credit card holder is eligible for using card before payment and thereafter it would, in turn, communicate the merchant establishment to complete transaction. In this case, both the banks are in reality providing a service to the card holder and the merchant establishment. The Issuing Bank is only providing service to the card holders to confirm their eligibility for credit which cannot be said to be a service to the merchant establishment or to the Acquiring Bank. However, we accept the fact that these observations are based on the submissions made and require detailed consideration on type of service, nature of transactions, veri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r affinity cards or co-branded cards; (v) In relation to promotion and marketing of goods and services through such card; (vi) By a person, to an issuing bank or the holder of such card, for making use of automated teller machines of such person; and (vii) By the owner of trade marks or brand name to the issuing bank under an agreement, for use of the trade mark or brand name and other services in relation to such card, whether or not such owner is a club or association and the issuing bank is a member of such club or association. Explanation. - For the purposes of this sub-clause, an issuing bank and the owner of trade marks or brand nam ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
