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TMI Blog2016 (11) TMI 524X X X X Extracts X X X X X X X X Extracts X X X X ..... ember 2004 during which a demand of Rs. 14,95,318/- stands made by the original adjudicating authority as service tax payable under the category of Business Auxiliary Service (BAS) under Section 65(19) of the Finance Act, 1994. The interest payable under Section 75 as well as penalties have been imposed. Aggrieved against this order, respondent-Bank filed an appeal before the Commissioner (A), who allowed the appeal in favour of the respondent-Bank vide impugned order dated 8.3.2007. Aggrieved by this impugned order, Revenue is before us in appeal. 2. The Revenue took the view that the activities of cash management referred by the respondent-Bank would be leviable for service tax under the BAS as above. Revenue challenged the impugned orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7.2001 under Section 65(12), however, the definition of the services from that date did not include cash management services. Cash management services were specifically included under Section 65 (12)(v) only w.e.f 1.6.2007 when its scope was expanded. Accordingly, their contention is that for the period prior to 1.6.2007 no service tax can be levied on this activity by bringing it under the category of BAS under Section 65(19). (ii) They have further submitted that the case has been decided squarely in their favour by the Hon'ble Supreme Court in the case of CST vs. M/s. Federal Bank Limited: 2016 (42) S.T.R. 418 (SC). 3. The learned DR fairly agrees that the issue stands decided in favour of the appellants by the Hon'ble Supreme Court o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd strategy; (vii) Provision and transfer of information and data processing and (viii) Other financial services, namely, lending, issue of pay order, demand draft, cheque, letter of credit and bill of exchange, providing bank guarantee, overdraft facility, bill discounting facility, safe deposit locker, safe vaults, operation of bank accounts; (b) foreign exchange broking provided by a foreign exchange broker other than those covered under sub-clause (a)." The deletion of the exclusion of cash management services is w.e.f 1.6.2007. The issue whether for the period prior to this date, such services can be charged to service tax under BAS stands decided by the Hon'ble Apex Court in the case of M/s. Federal Bank Ltd. (supra). The apex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stood excluded from the purview of service tax at the hands of the Bank until 31-5-2007, the authorities cannot levy service tax on an activity which is essentially cash management service, by taking aid of other general charging heads, such as business auxiliary service. 12. Having considered the various provisions in the Act, we are in agreement with the views expressed by the High Court even for a further reason that Section 65A of the Act, while dealing with classification of taxable services, has clarified in sub-section (2) that when for any reason, a taxable service is, prima facie, classifiable under two or more sub-clauses of clause (105) of Section 65, classification shall be effected as follows : (a) the sub-clause which pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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