The case involved a dispute regarding the applicability of service tax on corporate guarantee fees u/s...

The case involved a dispute regarding the applicability of service tax on corporate guarantee fees u/s 65(12)(a)(ix) of the Finance Act. The tribunal held that providing a corporate guarantee does not constitute Banking and Other Financial Services (BOFS) and is not related to lending activity. Citing precedents, the tribunal concluded that the corporate guarantee does not fall within the ambit of lending activity. The demand for service tax u/s reverse charge mechanism prior to 01.07.2012 was set aside as corporate guarantee does not qualify as BOFS. For the period post 01.07.2012, since the appellant had already paid the tax liability, it cannot be demanded again. The tribunal also found that the invocation of the extended period was unju..... .....

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