2012 (6) TMI 582 - AT - Service Tax

Whether a co-operative bank can be held to be liable for service tax in respect of providing banking and other financial services as covered by the expression or any other body corporate or any other person used in Section 65 (105)(zm) and sub-section 65 (12) - Held that - Tribunal held in case of Madhav Nagrik Sahkari Bank Ltd Vs. CCE Indore-I (2012 (3) TMI 283 (Tri)) that even the cooperative bank will be covered by the heading any other body corporate or any other person used in Section 65(105)(zm) and sub-section 65(12) of the Finance Act 1994 and would be liable to pay service tax. Hence directed to make pre-deposit and subject to deposit of the tax amount pre-deposit of penalty and interest stands waived - Decided against the assessee.

Summary

Issues: Liability of cooperative bank to pay service tax under Section 65(12) of the Finance Act, 1994.

The judgment by the Appellate Tribunal CESTAT, New Delhi, addressed the issue of whether a cooperative bank is liable to pay service tax under Section 65(12) of the Finance Act, 1994. The Tribunal noted that the appellant, a cooperative bank providing banking and financial services, contended that they did not fall under the category of services subject to service tax. However, referencing a previous case, the Tribunal held that even a cooperative bank falls under the definition of "any other body corporate, or any other person" in the relevant sections of the Finance Act, making them liable to pay service tax.

Furthermore, the Tribunal directed the appellant to deposit the entire duty amount within six weeks from the judgment date. Upon compliance with the tax deposit, the pre-deposit of penalty and interest was waived. The Tribunal scheduled a follow-up hearing for compliance verification and final disposal of the appeals on a specified date. The judgment was dictated and pronounced in an open court setting.