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TMI Blog2016 (12) TMI 290X X X X Extracts X X X X X X X X Extracts X X X X ..... r financial institutions. We are not in agreement with this view. The definition of banking and other financial services makes it applicable to any of the following:(a) Banking company (b) Financial institution including NBFC. (c) Any other body corporate (d) Or commercial concern - Since the various categories are separated by 'Or'it is clear that the service tax will be applicable to all. It is not disputed that the appellant is a body corporate, since they are a limited company. Hence we are of the view that levy of service tax will be applicable to the appellant. Benefit of N/N. 29/2004-ST dated 22.9.2004 - Held that: - the invoices clearly indicate the amount of the bill of exchange, discounting charges and the net amount paid to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oth the authorities below have confirmed the demand of service tax to the extent of ₹ 11,01,930/- along with interest chargeable under Section 75 as far as imposition of penalties under Sections 77 and 78 of the Finance Act, 1994. 2. Appeal against the impugned order is mainly on the following grounds: (i) The appellant is engaged in the manufacture of excisable goods falling under Chapter 56 of the Central Excise Tariff Act. They are not engaged in the business of banking or financial services. Their submission is that levy of service tax under banking and other financial services defined under Section 65(12). They have also placed reliance on several case laws including Inox Air Products Ltd. Vs. CCE, Nagpur 2015 (38) STR 191 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scounted amount to the seller of the goods and subsequently recovering the full amount of the bill of exchange from the borrower. The consideration received by the appellant for this transaction is the difference between the amount of the bill of exchange received by them from the borrower and the amount paid to the seller of the goods. The appellant claims that this difference is in the form of interest received by them for advancing the amount to the seller, it can also be described as discount. 6. The case of the appellant is that service tax becomes payable on this activity only when the service is rendered by banking company or financial institution including NBFC or other body corporate or commercial concern. Their submission is th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s submitted by the appellant in the appeal papers. We find that the invoices clearly indicate the amount of the bill of exchange, discounting charges and the net amount paid to the seller. In some cases, it has been shown as interest. The benefit of the exemption will be available whether the consideration is described as interest or discount. This has been specifically held by the Tribunal in the case of UCO Bank (supra). The documents submitted would require verification before allowing the benefit of exemption No. 29/2004-ST dated 22.9.2004. For this purpose, we remand the matter to the original adjudicating authority, who shall allow the benefit of the scrutiny of the documents. The appellant is directed to produce all relevant document ..... X X X X Extracts X X X X X X X X Extracts X X X X
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