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TMI Blog2016 (9) TMI 1111X X X X Extracts X X X X X X X X Extracts X X X X ..... case cannot be regarded as a finance lease as per the Accounting Standards. We are in agreement with the said findings. We further note that the tax liability on the respondent was sought to be sustained on the ground that they are a “body corporate” and hence covered by the definition. We note that the definition mentions “banking company” or “financial institution” and / “non-banking finance company”. The principal objective of all these shall be financial dealings. An industrial concern is not covered by the scope of the definition. Reliance placed by the ld. Commissioner (Appeals) on the Board Circular dated 09.07.2001 and dt. 04.07.2006 is appropriate to apply the scope of other body corporate for service tax purpose under “banking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t for service tax on income earned towards leasing out of certain machines. The Revenue sought to tax the respondent under the category of banking and financial services . The relevant extracts of the definition of Banking and Financial Service under Section 65 of the Finance Act, 1994 are given below: Section 65(12) banking and financial service means- (a) the following services provided by a banking company or a financial institution including a non-banking financial company or any other body corporate, namely:- (i) financial leasing services including equipment leasing and hire-purchase by a body corporate; (ii) ............... (iii) ............... (viii) ............... (b) Foreign excha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dards. We are in agreement with the said findings. We find nothing in the present appeal to controvert such finding. 4. Further, we note that the tax liability on the respondent was sought to be sustained on the ground that they are a body corporate and hence covered by the definition. We note that the definition mentions banking company or financial institution and / non-banking finance company . The principal objective of all these shall be financial dealings. An industrial concern is not covered by the scope of the definition. The Tribunal in the case of Inox Air Products Ltd. vs. CCE, Nagpur - 2015 (37) STR 1024 (Tri. Mum.) held that assessee who is engaged in manufacturing activity as a industrial unit canno ..... X X X X Extracts X X X X X X X X Extracts X X X X
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