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2011 (1) TMI 474 - AT - Service TaxService tax liability - Whether the amounts recovered by the State Bank from their customers showing the charges as expenses incurred on postal services for rendering banking services to the customers have to be liable to service tax - the State Bank of India is that they are in the business of providing banking services and not in the business of providing postal services - In respect of banking service provided by them they have discharged the service tax on the basis of amount charged by them - As per their understanding of the Section 67 they were not to pay service tax on the postal service which they utilised in the course of providing banking services to their customers. We note that in the case of services rendered by some branches of SBI the department has accepted the argument of SBI, at the adjudication stage and those orders are under Appeal - Therefore, it proper to issue a direction that the department shall not insist on any payment of tax demanded from State Bank of India in respect of the Appeals already filed till there is a decision by Committee on Disputes.
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