9911796707
TMI Blog2018 (6) TMI 253X X X X Extracts X X X X X X X X Extracts X X X X ..... is provided by the appellant is lending of money. The case of the department is that in case of lending service, interest accrued on lending by financial company has been excluded from the value of taxable services by virtue of sub rule 2 (iv) of Rule 6 of Service Tax (Determination of Value) Rules, 2006. This interest arrived on lending is not subject to service tax. It was further contended that notification no 29/2004-ST dated 22-9-2004 exempts the value of taxable service as is equivalent to interest on overdraft facility, interest on cash credit facility, discount on discouting of bills, bills of exchange or cheques. The appellant also provided cash credit facility to its customers and earned interest on the same. The contention of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rule (3A) stand complied with. He further submits that amount of demand of Rs. 30,00,66,294/- was more than the value of services rendered i.e. Rs. 10,87,89,210/- which is absurd. He submits that this Tribunal vide order No. A/1218/14/SMB-CE IV dated 4-7-14 has also held in case of Vaidyanath Urban Co-operative Bank Ltd. vs. CCE, Aurangabad involving identical issue that banking and other financial services which are output service appellant's service is not fully exempted but only part of the taxable value is exempted, hence Rule 6(3) of CCR, 2004 is not applicable. 3. On the other hand, Shri. MK. Sarangi, Ld. Joint Commissioner(A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. He placed reliance on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat above notification exempts only part of value of taxable service that is interest. The main service provided by the appellant is "banking and other financial service" which includes one of the service i.e. lending. The lending per se is taxable but part of value of the lending service to the extend of interest is exempted therefore service is taxable only part of the value is exempted vide notification No. 29/2004-ST dated 22-9-2004. In this fact entire basis of Revenue that interest being exempted service therefore Rule 6(3)(ii) is applicable is absolutely incorrect. Rule 6(3)(ii) is applicable only in case when common input service is used in a service which is wholly exempted from payment of service tax. In the present case lending s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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