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2013 (4) TMI 240 - CESTAT, BANGALORELevy of service tax on interest charged by credit card company for late payment of dues - Credit Card, Debit Card, Charge Card or other payment card service - valuation - Held that:- Agreeing with the point made by the assessee that bank’s customers holding credit cards purchase goods from shops and the bank pays to the shop keeper on their behalf. Till the customers pay up the money to the bank, they are debtors and they stand in the shoes of borrowers. If that be the case, the amount transacted is a “loan” and interest must accrue to the bank in the event of delay in repayment thereof. In this scenario, the legal provisions cited by assessee become relevant. During the period of dispute, “interest on loans” was in the excluded category and was not to be included in the gross value charged by the bank for rendering ‘credit card services’. The appellant having made out a prima facie case is therefore, entitled to waiver and stay.
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