2018 (6) TMI 197

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..... harges? - Held that:- There is no iota of evidence to discard the amount shown by the appellant is not an interest, merely saying that the amount received by the appellant is service charges for providing deposit to their subsidiary companies is without any evidence and the same cannot be accepted. The amount received by the appellant is interest cannot be said as charges of service provided by .....

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..... y @ of 9.60% for short period. The said amount was shown by the appellant in their balance sheet and has declared to registrar of companies in compliance with AS18 as interest received from their subsidiary companies. During the course of audit, the objection was raised by the revenue that the amount of interest is chargeable to service tax as these are service charges. In these set of facts, a sh .....

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..... lending the money is interest only which they have shown in their balance sheet as interest and the same has been assessed by the Income Tax Department as interest. Moreover, in compliance with AS18 they have declared the said amount as loan given to their sister unit or subsidiary company as loan on which they are earning interest and on the interest amount no service tax is payable by the appel .....

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..... e by both the sides, we take note of the fact that whether the amount shown by the appellant in their balance sheet as interest is actually interest or service charges. 7. In these context, the ld. counsel for the appellant drew our attention to letters produced by the appellate to the authorities below which clearly show that the amount shown in their balance sheet is an interest only and thes .....

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..... be said as charges of service provided by them. We further take note of the fact that interest received by the appellant is not chargeable to service tax as held by this Tribunal in the case of Thermax Ltd. (Supra), therefore, we hold that the appellant is not liable to pay any service tax of the amount in question. Accordingly, the impugned order is set aside. In result, the appeal is allowed. .....

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