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TMI Blog2024 (10) TMI 1549X X X X Extracts X X X X X X X X Extracts X X X X ..... S. Ravindra Bhat, J. rightly observes that as per Section 65 (33a) of the Act, seven distinct heads of credit card services were sought to be taxed, the idea being to broaden the coverage of the species of services into taxation net. Clause (iii) thereof applies to service by any person, which includes service by the issuing bank and the acquiring bank. The use of the word and in conjuncture is indicative of the legislative intent. MDR is charged/levied by the acquiring bank at the first point in time and subsumes both the acquiring bank fee and the interchange fee of the issuing bank, as well as the platform fee. It is the sum total of the three. The aforesaid charge occurs first in point of time and deduction and payment of service tax at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... JAY KUMAR AND HON'BLE MR. JUSTICE R. MAHADEVAN For the Appellant(s) Mr. N Venkataraman, A.S.G. Mr. Gurmeet Singh Makker, AOR, Mr. V C Bharathi, Adv., Mr. Sreekumar C. N, Adv., Mr. Zoheb Hussain, Adv., Mr. Rupesh Kumar, Adv., Mr. Anmol Chandan, Adv., Mr. Mukesh Kumar Maroria, AOR For the Respondent(s) Mr. Arvind P. Datar, Sr. Adv., Mr. Tarun Gulati, Sr. Adv.(N/P), Mr. Kumar Visalaksh, Adv., Mr. Nishant Shah, Adv., Ms. Sweta Rajan, Adv., Mr. Udit Jain, Adv., Mr. Mahfooz Ahsan Nazki, AOR JUDGMENT SANJIV KHANNA, J. 1. We have heard the learned counsel appearing for the parties at some length. 2. The contention of the Revenue is that the acquiring bank should have paid service tax on the Merchant Discount Rate [ MDR .] minus the interchange ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the context and the nature of the transaction, read with Sections 66 and 68 of the Act and Rule 5 (1) of the Service Tax (Determination of Value) Rules, 2006, is immaterial as MDR is taxable and service fee is to be taxed. MDR, as a service, has been taxed and also paid. 6. We wonder whether the Revenue would have accepted the bifurcation as argued by them in case the acquiring bank and the issuing bank had taken the stand which is now taken by them. While interpreting a tax provision, one must keep in mind that the legislature ennobles the ease of collection of tax and payment of tax. These principles, especially when there is no loss of revenue, can be taken into consideration for interpreting a provision in case of doubt or debate. 7. It ..... X X X X Extracts X X X X X X X X Extracts X X X X
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