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TMI Blog2024 (9) TMI 1494X X X X Extracts X X X X X X X X Extracts X X X X ..... on. This is also clear from the SCN which mentions that no commission or interest or fee was charged by the appellant from the associate enterprises for providing corporate guarantee. This issue has now stand settled by a decision of the Tribunal in COMMISSIONER OF CGST CENTRAL EXCISE MUMBAI EAST VERSUS EDELWEISS FINANCIAL SERVICES LTD [ 2022 (2) TMI 1359 - CESTAT MUMBAI] . The department contended that service tax would be leviable on corporate guarantee given for subsidiary company without any consideration. This contention was not accepted by the Tribunal and it was observed 'Any activity must, for the purpose of taxability under Finance Act, 1994, not only, in relation to another, reveal a 'provider', but also the flow of &# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant] has filed this appeal to assail the order dated 07.12.2018 passed by the Commissioner Central Tax, Delhi East, Commissionerate [the Commissioner] adjudicating two show cause notices dated 15.07.2016 and 18.04.2018. The Commissioner has confirmed the demand under banking and other financial services provided by the appellant to the associate enterprise by giving corporate guarantees to various banks/financial institutions on behalf of the associate enterprises for their loan/overdraft facility with penalty and interest. 2. Cross-Objection No. 50464 of 2019 has been filed by the department for examining whether the penalties imposed under sections 76 and 77 of the Finance Act, 1994 [he Finance Act] are commensurate and whether the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at service tax would be leviable on corporate guarantee given for subsidiary company without any consideration. This contention was not accepted by the Tribunal and it was observed: 8. . Any activity must, for the purpose of taxability under Finance Act, 1994, not only, in relation to another, reveal a 'provider', but also the flow of 'consideration' for rendering of the service. In the absence of any of these two elements, taxability under section 66B of Finance Act, 1994 will not arise. It is clear that there is no consideration insofar as 'corporate guarantee' issued by respondent on behalf of their subsidiary companies is concerned. 9. The reliance placed by Learned Authorised Representative on the 'non-monet ..... X X X X Extracts X X X X X X X X Extracts X X X X
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