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TMI Blog2023 (8) TMI 253X X X X Extracts X X X X X X X X Extracts X X X X ..... x as they cannot be classified under the category of banking company or financial institutions. From the reply to the Show Cause Notice and the contentions, it is found that the appellant has not denied the fact of giving bill discounting facility to some of its customers, but had denied liability only on the ground that they are not a banking company or a financial institution. From the definition of BFS, it is found that sub-clause (ix) covers even bill discounting facility and as such, the appellant being a limited company, is also covered under the said definition - the definition makes it clear that such bill discounting facility could be offered not only by a banking company or a financial institution, but also a body corporat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ancial services . 5. However, in adjudication, the Deputy Commissioner of Central Excise, Tambaram-adjudicating authority proceeded to confirm the demand as proposed in the Show Cause Notice vide Order-in-Original No. 02/2011 dated 27.01.2011. 6. Feeling aggrieved by the above demand, it appears that the appellant filed an appeal before the first appellate authority, but however, the first appellate authority also having dismissed their appeal vide impugned Order-in-Appeal No. 156/2013 (M-III) ST dated 02.12.2013, the present appeal has been filed before this forum. 7. Heard Shri M.N. Bharathi, Ld. Advocate for the appellant and Smt. Anandalakshmi Ganeshram, Ld. Superintendent for the Revenue. Ld. Advocate has also filed written su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he lower authorities. She would also invite our attention to the definition of banking and other financial services to contend that the scope of the said service covers even bill discounting facility. 9.2 She would also rely on an order of the co-ordinate Delhi Bench of the CESTAT in the case of M/s. Hind Filters Ltd. v. Commissioner of Central Excise, Indore [2017 (51) S.T.R. 70 (Tri. Del.)] 10. We have heard the rival contentions, we have gone through the documents placed before us and we have also gone through the order relied upon during the course of arguments. 11. Upon hearing, we find that the only issue that is to be decided by us is: whether the nature of activity rendered by the appellant was amenable to Service Tax u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cipal to principal basis. In fact these discounts are considered as abatable elements in value for excise duty purposes at the hands of the manufacturer/seller Buyers pay for the goods purchased and based upon so many factors, discounts are offered by manufacturers to promote their own sales and granting of discounts is part of marketing strategy adopted by manufacturer himself for his own self 13.2 The case of the appellant, therefore, appears to be that Service Tax is payable on bill discounting under banking and other financial services ( BFS for short) only when the service is rendered by a banking company or financial institution including a non-banking financial company. They would thus contend that they are only a bo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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