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2012 (10) TMI 725 - Commissioner - Service TaxDemand of service tax - fleet card - Appellant, a non-banking financial company are engaged in financing purchase of commercial vehicles, cars etc., and registered under Banking & other financial services, Business Auxiliary Service, Business support service etc. - Appellant extended credit facility for purchase of fuel/lube oils through co-branded fleet cards – alleged that such income was liable to service tax under the head “Banking and other financial services” falling under Sec.65(12) upto May’06 and there after under “Credit card, Debit card or other payment card service” falling under Sec.65(33a) of the Finance Act – Held that:- Fleet cards cannot be used to withdraw any cash and the bills in respect of the same are also settled by the appellant to the oil companies directly. It also has limited usage and is thus distinguishable with the credit cards on the basis of scope of usage and restrictions - income earned as a finance charge is nothing but the interest on loans given and interest on loans are not liable to service tax - ‘fleet card’ income earned by the appellant is not liable to service tax
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