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TMI Blog2024 (8) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... Larger Bench of the Tribunal in the case of CCE S.T. CHANDIGARH VERSUS STATE BANK OF PATIALA [ 2016 (10) TMI 800 - CESTAT NEW DELHI-LB ] has settled the said issue and has held ' once State Bank of Patiala has been appointed as agent of RBI, it is transacting Government business which is in the nature of a sovereign function performed on behalf of the Government and hence not liable to Service Tax.' The impugned order is not sustainable in law and the same is set aside - Appeal allowed. - MR. S. S. GARG, MEMBER (JUDICIAL) AND MR. P. ANJANI KUMAR, MEMBER (TECHNICAL) Present for the Appellant: Ms. Shruti Khandelwal, Advocate Present for the Respondent: Shri Anurag Kumar, Authorized Representative ORDER The present appeal is directe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordingly. Further, these summaries were consolidated into a single figure on a quarterly basis and reported to the RBI. 2.3 Based on the above consolidated summary, the RBI credited the Appellants' account with the commission earned, out of the total commission received, Appellant retained 25% (approx.) and transfer the remaining 75% (approx.) to the respective branches. 2.4 During the disputed period i.e., 01.10.2006 to 30.09.2011, the Appellant has received total commission of Rs. 13,80,13,654/ out of which only 25% (approx.) of the commission amounting to Rs. 3,53,85,775 is retained by appellant for carrying out State Government business transactions for RBI. Out of 25% of the amount retained, Rs. 1,36,48,430/- are received by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... because the appellant was acting as an agency bank of RBI and any services provided by or to RBI are exempt from leviability of service tax. She further submits that this issue is no more res integra and has been held in favour of the assessee bank in the following decisions: State Bank of Hyderabad Versus CCT, Hyderabad - GST dated 20.08.2018 cited as 2018 (11) TMI 165-CESTAT Hyderabad CCE S.T. Chandigarh Versus State Bank of Patiala dated 17.10.2016 cited as 2016 (10) TMI 800-CESTAT NEW DELHI-LB Syndicate Bank Versus Commissioner of Central Excise and Service Tax dated 02.08.2018 cited as 2018 (8) TMI 699-CESTAT Bangalore 4.3 She further submits that the show cause notice issued in the present case is also defective because it has failed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... national banks are agents of the RBI. 7.5 The Central Govt. of India by Notification No. 22/2006-ST has given exemption from the payment of service tax of any taxable services provided to or by RBI either in India or under Reverse Charge Mechanism. In our view as the respondent assessee is an agent of RBI, exemption granted by notification No. 22/2006-ST, needs to be extended to respondent. In our view the claim of the respondent from exemption of the service tax on the commission received for undertaking the activity of receiving various taxes on behalf of the Govt. of India, seems to be justified inasmuch as that the provisions of Section 45 of RBI Act categorically mandated for appointing national bank or a State Bank by the RBI for spe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o Service Tax. 7.8 In our considered view the judgement of the Tribunal in the case of Canara Bank 2012-TIOL-790- CESTAT-Ahm has correctly interpreted notification no. 22/2006-ST and is correct exposition of the law. In our view the said judgement does not require any reconsideration. 7.9 As regards the case law cited by the learned D.R. and reliance placed in the case of Malwa Industries Ltd (supra) we find that in that case, the Apex Court was considering the situation of exemption by a notification from a countervailing duty. Learned Commissioner (A.R.) was relying upon this decision to canvass his point that exemption notification should be read literally and should be construed fiberally once it is concluded that benefits the notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orm its function; from the agreement also, it is quite clear that the Canara Bank have been appointed as an agent. We find that the decision of Hon'ble Supreme Court on this issue in the case of State of Madras Vs. Cement Allocation Co-ordinating Organization- 1971 (2) SCSS/587 Manu/SC/0636/1997 as quoted by the learned counsel for the Chartered Accountant would be applicable to the facts and the circumstances of the case . The Hon'ble Tribunal observed that the observations of the Hon'ble Supreme Court make it clear that exemption available to the principal would be available to the agent also. For this purpose, since the agent is liable for the exemption which is available to the principal in terms of relationship with the pri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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