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TMI Blog2023 (5) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... ve Bank of India, were not taxable with regard to the terms of the notification. The opinion of the findings of the CESTAT are in accordance with the judgment of this Court in STATE OF MADRAS VERSUS THE CEMENT ALLOCATION AND CO-ORDINATING ORGANISATION [ 1971 (9) TMI 161 - SUPREME COURT] . The Court had said on that occasion that the acts of the agent are also attributable to the principal. This principle is also embodied in Section 65 (7) of the Finance Act, 1994. This Court is of the opinion that the reasoning of the tribunal with respect to the activities of the scheduled Banks, so far as scheduled banks perform activities as statutory agent of the Reserve Bank of India under Section 45 of the Reserve Bank of India Act, 1934 are con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 7557/2022 and Diary No. 30965/2019. The question of law sought to be urged by the Commissioner of Service Tax in these appeals is whether the respondent-scheduled Banks are eligible to claim exemption from payment of service tax in accordance with notification 22/2006-ST dated 31.03.2006, on the commission received by them in the Reserve Bank of India, for rendering banking or financial services. The revenue had urged unsuccessfully before the Tribunal that the commission received by the Scheduled Banks, from the Reserve Bank of India for rendering certain services were classifiable as banking or financial services under Section 65 (12). The revenue contended that the services so rendered could not be the subject matter of the no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s statutory agent under Section 45 of the Reserve Bank of India Act, 1934 and also the other activities of the Scheduled Banks involving statutory functions on behalf of the Reserve Bank of India, were not taxable with regard to the terms of the notification. The opinion of the findings of the CESTAT are in accordance with the judgment of this Court in State of Madras vs. Cement Allocation Coordinating Organisations, 1971 (2) SCC 587. The Court had said on that occasion that the acts of the agent are also attributable to the principal. This principle is also embodied in Section 65 (7) of the Finance Act, 1994. In view of the above, having regard to these facts, this Court is of the opinion that the reasoning of the tribunal with respe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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