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2012 (6) TMI 274 - AT - Service TaxTaxability of treasury services being provided by Bank where government does not have its own treasury and maintaining currency chests on behalf of Reserve Bank of India (RBI) - services of payment and receiving money on behalf of government in respect of various transactions - Revenue contended aforesaid services to be covered under definition of other financial services - Held that:- Exemption to the principal would be available to the agent also. For this purpose, since the agent is eligible for the exemption which is available to the principal in terms of the relationship with the principal of the agent and not because of exemption granted specifically to the agent or principal, we have to hold that the appellant is eligible for exemption. If RBI were to undertake the activity there would have been no question of levy of service tax. Therefore, we hold that the benefit of exemption available to RBI would be available to the agent i.e. Canara Bank. In view of the fact that appellant is held to be eligible for exemption as an agent of RBI, other issues are not considered at this stage. Limitation - Since question involves interpretation of law and facts in this case, therefore, we consider invocation of extended period is not called for. Penalty also set aside - Decided in favor of assessee.
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