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TMI Blog2014 (12) TMI 504X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue being 'whether the commission/discount earned by the acquiring bank from the Merchant Establishment is liable to service tax under the category of banking and financial services for the period prior to 01.05.2006'. 4. Both the parties agree that the issue herein is same as in the case of earlier decision of the Division Bench of this Tribunal in the case of Commissioner of Service Tax, Mumbai vs. HDFC Bank Ltd. and others in appeal no. ST/143 to 145/07 and Standard Chartered Bank vs. Commissioner of Central Excise in appeal no. ST/117/10, wherein vide order dated 16.08.2013, after observing in detail, the issue involved, the Bench being prima facie of the view (of which I was also a Member) that when Credit Card Services were brou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ancial services occurring in taxable service defined under section 65 (72)(zm) and such an expression is expansive in nature and scope, and therefore all services rendered in relation to credit card services, whether by merchant establishments, acquiring banks or others would be chargeable to service tax even prior to 01.05.2006. We respectfully disagree with the said view taken for the following reason. The expression "in relation to" qualifies only the "credit card services" and not the customer who is the service recipient nor the service provider, the issuing bank. Thus only the scope of credit card services is expanded by the said term. The credit card services comprises of a number of services such as extending credit for the purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; (ii) Whether the sub-clause (iii) in the definition of taxable service viz. "credit card, debit card, charge card or other payment card service" in section 65 (33a) can be said to be applicable retrospectively, i.e. from 16 July 2001 when section 65 (72) (zm) became effective? (iii) Can 'merchants / merchant establishments' be considered as 'customer' as envisaged in Section 65 (72)(zm) of the Finance Act, 1994 as it stood prior to 1-5-2006? (iv) Whether Merchant Establishment Discount can be said to be received "in relation to" credit card services when in fact in a particular transaction, the Acquiring bank receiving ME Discount may not have issued that particular credit card a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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