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TMI Blog2008 (11) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... her financial services only w.e.f. June 2007 – Revenue cannot say that the said service would be classifiable under the category of Business Auxiliary Service and subject it to levy. Such an action would defeat the function of the government which is excluded the said activity from the scope of Banking and other financial services - ST/239/2008 - 1333/2008 - Dated:- 25-11-2008 - Shri T. K. Jaya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dia for opening of a Cash Management Service branch at Ernakulam. In Cash Management the following activities are included: a) Maintenance of accounts of CMS clients and undertaking all types of transactions including receipt and payment of cash in such accounts, Collection of cheques b) Collection of bills and other receivables c) Payment of invoices on behalf of the clients d) Poolin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Cash Management Services . The Cash Management Service during the relevant period is excluded from the scope of Banking and other financial services. In fact, during the relevant period in terms of Section 65 (12) of Finance Act, 1994, Banking and other Financial services means - a) The following services provided by a banking company or a financial institution including a non-banking finan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... than those covered under sub-clause (a) 6.1 He stated that on a very careful reading of the above mentioned provision it is very clear that the activity carried out by the appellants would amount to cash management and such cash management service is specifically excluded from the scope of Banking and other financial services during the relevant period. However, the said cash management was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecifically excluded. When the service is excluded from the scope of Banking and other financial services, the intention of the Government is not to subject it to service tax at all. Revenue cannot say that the said service would be classifiable under the category of Business Auxiliary Service and subject it to levy. Such an action would defeat the function of the government which is excluded the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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