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TMI Blog2019 (3) TMI 1391X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeared to the department that this activity would fall under the category of Banking and other Financial Services under section 65(105)(zm) of the Finance Act, 1994 read with section 65(12) of the Act. Show-cause notice was issued proposing to demand service tax for the period Apr.'05 to Jun.'10 along with interest and also for imposing penalties. After due process of law, the original authority confirmed the demand of interest and also imposed penalties. In appeal, the Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellants, the learned counsel Ms. Nancy appeared and argued the matter. She submitted that services rendered by the appellants are in the nature of money lending activity. They are registered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial issue needs to be addressed is: under the said notification, whether the exemption to the value equivalent to interest, is limited only in relation to the services of overdraft facility & cash credit facility and not applicable to discounting of bills; and the value equivalent to discounts only is exempted for rendering the service of bill discounting facility. At the first blush, the said interpretation may sound plausible, however, on a deeper analysis and on applying the meaning of the expression „as the case may be‟, culled out as above, in the present context, the argument that interest earned on over draft facility and cash credit facility only be exempted, and not on bill discounting facility would lead to an incorrec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e covered. Besides, on an enquiry from the Bench about the practice of assessment in case of other banks, it has been informed that no demand has been issued to other banks for rendering similar services. We also find that in the new negative list regime introduced w.e.f.01.07.2012, there is no scope for any ambiguity and call for interpretation as the position has been made clear in the respective provision 66D of the Finance Act, 1994; the relevant provision reads as follows: SECTION [66D. Negative list of services. - The negative list shall comprise of the following services, namely:- (n) services by way of- (i) extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount; In vie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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