9911796707
TMI Blog2019 (3) TMI 1391X X X X Extracts X X X X X X X X Extracts X X X X ..... nical) For the Appellant Ms. Nancy, Adv. For the Respondent Shri S. Govindarajan, AC (AR) ORDER Per Bench: Brief facts are that the appellants are engaged in the business of discounting of bank instruments. They accept cheques and demand drafts tendered by their clients and pay cash based on the bank instruments so tendered after deducting a percentage of the total amount as collection charges. It appeared 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt collected by way of bill discounting will fall under the category of Banking and other Financial Services. 4. Heard both sides. 5. The issue is whether the appellants are liable to pay service tax on the charges/amount collected for bill discounting facility. The very same issue was considered by Tribunal in the case of M/s. UCO Bank, Kolkata (supra). The relevant paragraphs are reproduced below for better appreciation:- The crucial 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 e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of credit, bill of exchange, providing a bank guarantee, overdraft facility, bill discounting, safe deposit bankers, or safe vaults and operation of bank accounts. The interest amount would; however, remain excluded from the purview of service tax. In addition to banking company, financial institution including a non-banking financing company, body corporate and any other commercial concern providing financial services will also be 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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