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TMI Blog2018 (8) TMI 900X X X X Extracts X X X X X X X X Extracts X X X X ..... to RBI. In terms of Section 65(7) of the Finance Act, 1994, Assessee means a person liable to pay the service tax and includes his agent . Under Section 45 of the RBI Act, it provides that RBI can nominate other banks as its agent at all places or at any place in India for such purpose as the Bank may specify. Therefore, reading the Notification and Section 65(7) of Finance Act, 1994 and the powers vested with RBI to appoint their agents, there is no hesitation in concluding that the exemption available to RBI in discharge of its functions should be available to the appellant working as the Agents of RBI in terms of the Agreement. Appeal allowed - decided in favor of appellant. - ST/804/2009; ST/422, 2776, 2885/2011; ST/747/2012 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the same is Government. 2. The appellants contended that the services covered by the show-cause notice cannot be classified as operation of bank accounts under the category of Banking and Other Financial Services . There is no customer/client relationship between the bank and the Government. The services rendered by the bank are statutory function carried out on behalf of the Government therefore not liable to Service Tax. The learned Commissioner failed to appreciate the fact that the services were exempted by Notification No. 6/2006- ST dated 01.03.2006. The learned counsel for the appellants has relied upon the case of Canara Bank - 2012 (28) STR 369 (Tri. Ahmedabad) and he further submitted that the issue is squarely settled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cause of Section 2(g)(iii) a Commissioner agent is also considered as a dealer‟ for the purpose of the Madras General Sales Tax Act, 1959. Hence the taxable turnover of a Commission agent is liable to be brought to tax. The only other provision that we need refer is Rule 6 of the Rules framed under the Act. That rule reads: The tax or taxes under Section 3, 4 or 5 shall be levied on the taxable turnover of the dealer. In determining the taxable turnover, the amounts specified in the following clauses shall, subject to the conditions specified therein, be deducted from the total turnover of a dealer. (c) all amounts falling under the following two heads, when specified and charged for by the dealer separately, without includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as under: 13. The above observations of the Hon ble Supreme Court make it clear that exemption to the principal would be available to the agent also. For this purpose, since the agent is eligible for the exemption which is available to the principal in terms of the relationship with the principal of the agent and not because of exemption granted specifically to the agent or principal, we have to hold that the appellant is eligible for exemption. If RBI were to undertake the activity there would have been no question of levy of service tax. It was also brought to our notice that RBI is not paying service tax. Same functions being carried out by RBI are exempted. Therefore, we hold that the benefit of exemption available to RBI would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the same benefit. 5.3 We find that there is no ambiguity with reference to the Notification; therefore, the submission of the departmental representative for strict interpretation is not warranted. There is no doubt that the exemption is given vide Notification No.22/2006-ST dated 31.5.2006 is applicable to RBI. In terms of Section 65(7) of the Finance Act, 1994, Assessee means a person liable to pay the service tax and includes his agent as this was also held by the Larger Bench. We find that under Section 45 of the RBI Act, it provides that RBI can nominate other banks as its agent at all places or at any place in India for such purpose as the Bank may specify. Therefore, reading the Notification and Section 65(7) of Finance Act ..... X X X X Extracts X X X X X X X X Extracts X X X X
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