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TMI Blog2023 (9) TMI 569X X X X Extracts X X X X X X X X Extracts X X X X ..... ment. 2. Briefly stated the facts of the case are that the appellant is a banking agency and a body corporate conducted their operations in India. They are acting as agency bank for the Reserve Bank of India (RBI) and were receiving agency commission at the rates notified by RBI as per transaction basis, in respect of receipts or payments made on behalf of Government of India. The service provided by the appellant to the RBI amounts to providing a taxable service under Banking and Financial Services i.e. Operation of Bank Accounts w.e.f. 10.09.2004 and it was found that the appellant was not paying service tax on the said activity. 2.1 Therefore, a show-cause notice dated 16.07.2008 was issued to the appellant to demand service tax amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the appellant submits that the issue of leviability of service tax on commission on behalf of RBI has been settled by the Hon'ble Supreme Court in the case of CST-Bangalore Vs Canara Bank - Reported in 2023(5) TMI 137 - (SC) wherein the Hon'ble Apex Court affirmed the decision of this Tribunal in the case of Canara Bank Vs CST-Bangalore - Reported in 2012(6) TMI 274 CESTAT -AHMD and held that no service tax is payable on agency commission received on behalf of RBI. The Hon'ble Apex Court also took note of this Larger Bench decision of this Tribunal in the case of CCE Vs State Bank of Patiala - Reported in 2016 (45) STR 333 (Tri.-LB). Therefore, it is submitted that no service tax is payable by the appellant on agency service received on b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7) TMI 1174 - CESTAT Mumbai, Visible Alpha Solutions India Pvt Ltd vs CGST & EX - 2019 (12) TMI 1124 - CESTAT Mumbai. 4.4 With regard to cenvat credit in respect of Croporate Club Membership service, it is his contention that it is not individual membership of Employee. It is a corporate membership for improvement of business purposes and access to top industrialist and it is mainly for 'Sales Promotion' and 'Market Research' by the Banking Staff and the said issue has been settled by this Tribunal in the cases of Vinayak Steels Ltd Vs CCE - 2017 (7) TMI 346 - CESTAT Hyderabad & EMCO Ltd Vs CCE - 2023 (5) TMI 379 - CESTAT Mumbai. 4.5 Finally, the ld.Consultant submitted that the extended period of limitation cannot be invoked in the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he relevant parts of the notification reads as follows : "G.S.R. (E). - In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) and supersession of the notification of the Government of India in the Ministry of Finance, (Department of Revenue) No. 7/2006-Service Tax dated the 1st March, 2006, except as respects things done or omitted to be done before such supersession, the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the following taxable services from the whole of the service tax leviable thereon under section 66 of the said Finance Act, namely : 1. taxable services provided or to be provided to any person, by the Reserv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as statutory agent of the Reserve Bank of India under section 45 of the Reserve Bank of India Act, 1934 are concerned do not call for any interference. The appeals are accordingly dismissed." As the Hon'ble Apex Court has held that the commission received by the scheduled bank on behalf of the RBI, is not taxable service. We, therefore, hold that the demand of service tax on the agency commission received on behalf of the RBI by the appellant, the appellant is not liable to pay service tax. Issue (b) Denial of cenvat credit on telephone in residence of employees - 8. In this case, it is a fact that the telephone has been installed to the residence of employees for use of their business purposes in order to stay connected 24 X 7 with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the appellant is entitled to take the cenvat credit on medical insurance premium made by the appellant in their employees. Issue (d) Denial of cenvat credit on Corporate club Membership - 10. We find that it is a fact that the Membership has been taken by the appellant as corporate membership themselves and the same is for the purposes of business meetings with top industrialist and their clients for 'promotion of their business'. In that circumstances, relying on the decision of this Tribunal in the case of EMCO Limited (supra), wherein this Tribunal has observed as under : "7. Insofar as Club Services are concerned, I find that the issue is no more res integra and this Tribunal has decided it in the case of Vinayak Steels Limi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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