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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 ..... he period prior to 1.6.2007 such services would be covered by BAS. Reliance placed on the decision of the case of CST vs. M/s. Federal Bank Limited [2016 (3) TMI 354 - SUPREME COURT] where it was held that Clause (12) of Section 65 covers all charging services rendered by the Banks. - when cash management services stood excluded from the purview of service tax at the hands of the Bank until 31.05.2007, 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. Appeal dismissed - decided against Revenue. - ST/244/2007-DB - Final Order No. 21000 / 2016 - Dated:- 21-10-2016 - Shri S. S. Garg, Judicial Member A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other incidental or auxiliary support services provided or rendered for or on behalf of client. This would cover business promotion and support services including customer care services, billing, collection or recovery of dues, accounts and remittances, evaluation of prospective customers, client surveys, public relation services, services as commission agent, etc. (ii) All such services shall include services as commission agent but shall exclude any information technology service, i.e., any service in relation to designing, developing or maintaining of computer software or computerized data processing or system networking of any other service primarily in relation to operation of computer system. (iii) The respondent-Bank being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efinition of scope of BOFS was further amended w.e.f 1.6.2007 when cash management service was specifically included under Clause (v). It is also on record that from 1.6.2007, the appellant has been discharging service tax liabilities under BOFS. Revenue authorities have taken a view that for the period prior to 1.6.2007 such services would be covered by BAS. Prior to the amendment in Section 65(12) w.e.f. 1.6.2007, the definition stood as follows: (12) banking and other financial services 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-p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not in dispute that under Clause (12) of Section 65, there was a specific mention in sub-clause (v) to the effect that the banking and other financial services means asset management including portfolio management, all forms of fund management, pension fund management, custodial, depository and trust services, but does not include cash management. Subsequently, the legal position has been altered and the above noted exclusion of cash management services has been dropped with effect from 1-6-2007. This amendment in Clause (12) has been noted by the High Court in the impugned judgment also. 10. The High Court has given detailed consideration to Clause (19) of Section 65 which defines business auxiliary service . It has thereafter held t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces which cannot be classified in the manner specified in clause (a), shall be classified as if they consisted of a service which gives them their essential character, insofar as this criterion is applicable; (c) when a service cannot be classified in the manner specified in clause (a) or clause (b), it shall be classified under the sub-clause which occurs first among the sub-clauses which equally merit consideration. 13. It is notable that clause (105) has several sub-clauses enumerating various taxable service by reference to its description. Clearly, the stand of the High Court is supported by the aforesaid statutory provision also and requires no interference. Since the issue is no longer res integra, we respectfully foll ..... X X X X Extracts X X X X X X X X Extracts X X X X
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