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TMI Blog2014 (11) TMI 585X X X X Extracts X X X X X X X X Extracts X X X X ..... like other banks, RBI does not undertake borrowing or lending on its own. Whenever the RBI undertakes borrowing activities, it is on behalf of the Government of India to manage the Indian economy which its constitutional responsibility. Therefore, the lending or borrowing of money by the Government is a sovereign function and on such functions there cannot be any tax liability whether by way of di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. Order-in-appeal No. Period involved Service tax demand 01. ST/450/10 SB(70)/STC/2010 dt. 15/06/2010 Sep 2002 to Mar 2004 13,19,158 02. ST/224/11 M-I/AV/435/2010 dt. 15/12/2010 Aug 2003 to O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Service (BAS). However, they were issued a show-cause notice dated 17/10/2008 demanding service tax for the period prior to 10/09/2004 under Banking and other Financial Services . These demands were adjudicated upon and were confirmed along with interest and imposing penalties. Hence, the appellants are before us. 3. The learned Counsel for the appellants submit that the issue relating to li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ime and therefore, the demands are clearly time barred inasmuch as they have started discharging the service tax liability under BAS since 10/09/2004. The department has not disputed the classification adopted by the appellant. Since BAS is not carved out of Banking and other Financial Services (BoFS), the question of payment of service tax under BoFS would not arise at all for the period prio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tivities, it is on behalf of the Government of India to manage the Indian economy which its constitutional responsibility. Therefore, the lending or borrowing of money by the Government is a sovereign function and on such functions there cannot be any tax liability whether by way of direct tax or by way of indirect tax. This is the principle followed by this Tribunal in the case of HDFC Bank and C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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