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2013 (12) TMI 968 - AT - Service TaxBanking and other financial services u/s 65(125) (zm) of Finance Act – Scope of the term Financial Lease - Service provided to customer by a banking company or a financial Institution in relation to banking and other financial services attracted service tax – Held that:- The lease agreements are not financial lease agreements, the same would not be exigible to service tax under section 65(105) (zm) r.w. section 65(12) company can be said to be rendering "banking and other financial services" only if its transactions with the customers are of financial nature - even during the period price to 01.06.07 when there was no definition of the term "Financial Leasing" in Section 65(12), this term did not cover the operating lease agreements in which there is no clause giving the lessee, at the end of the lease period, entitlement to purchase the asset an option to purchase the asset. In absence of its definition in it, is to be interpreted in the sense in which it is understood in common parlance or trade parlance – no infirmity in the impugned order - as decided in National Oxygen Ltd. Vs. CCE Pondichery (2007 (4) TMI 41 - CESTAT, CHENNAI) reported in has held that the expression "any other body corporate" in the definition of "Banking and other financial service" must be read in ejusdem generis with the expression occurring prior thereto in the definition - there is no evidence to show that the lessee agreements cover 75% or more of the estimated economic life of the leased assets – Decided against the revenue.
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