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2014 (8) TMI 985 - AT - Service TaxDenial of benefit of exemption - Banking or other Financial services - Held that:- since it is settled law that an exemption Notification must be strictly and narrowly construed, treating a bank authorised by the RBI (to transact Government business) as the agent of the RBI and thus entitled to exemptions clearly confined to the RBI (under Notification No. 22/2006-S.T.), is an interpretation that warrants deeper analysis and possible reconsideration. - Matter places before President, for appropriate administrative orders as to constitution of a Larger Bench for consideration of following question:- Whether qua Notification No. 22/2006-S.T., dated 31-5-2006, the commission received from the Reserve Bank of India by a scheduled bank (entrusted with functions of transaction of Govt. business) for rendition of “Banking or Financial” service is entitled to exemption from Service Tax on the ground that the banking company providing such taxable service is an agent of the Reserve Bank of India and thus entitled to exemptions specified in clause (i) of Notification No. 22/2006-S.T., dated 31-3-2006.
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