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TMI Blog2024 (3) TMI 1179X X X X Extracts X X X X X X X X Extracts X X X X ..... herein and set aside the order-in-original dated 05.05.2017 passed by the Additional Commissioner. 2. M/s Pharmax Corporation Ltd. the respondent provides various services and pays service tax on them. During the course of audit and scrutiny of balance sheets, it was found that the respondent had provided corporate guarantee on behalf of its sister concerns to lenders but had not charged any commission or interest or fees for providing the guarantee. It is the case of the Revenue that had the sister concerns approached other banks or institutions to obtain a guarantee of equivalent amount, the banks would have charged them certain fees. Such fees would have been taxable at the hands of the banks under the category of "Banking & Financial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. On behalf of the Revenue, learned authorized representative for the Department reiterated the following grounds of appeal and prayed the impugned order may be set aside as it was not legal and proper and the order of the Additional Commissioner may be restored for the following reasons : (a) The Tribunal held that in the following extended corporate guarantees would fall under Section 65 (12) of the Finance Act, 1994 i.e. under Banking & financial Services. (i) Kaveri Agricare versus CST, Mysore 2011 (22) S.T.R. 220 (Tri. - Bang.) ; (ii) Olam Agro versus CST, Delhi - I 2014 (33) S.T.R. 251 (Tri. - Del.) (b) the consideration received by one entity for providing corporate guarantee to the other is classifiable under Banking & Oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if the consideration received is zero any percentage will be zero itself. This issue has been settled in the series of decisions which have been correctly relied upon by the Commissioner (Appeals) while setting aside the order of the Additional Commissioner. 10. We have gone through the two case laws relied upon by the learned authorized representative. It is being explicitly recorded in Kaveri Agricare that the "demand is on account of consideration received by the appellant for providing the above corporate guarantee during the material period". Similarly, in the case of Olam Agro it is recorded "a show cause notice dated 03.04.2012 was issued covering the period October 2010 to 31.12.2011 proposing levy of service tax, interest and pena ..... X X X X Extracts X X X X X X X X Extracts X X X X
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