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2013 (10) TMI 203 - CESTAT NEW DELHIHire/purchase and lease transactions - banking and financial services - service tax on interest income disclosed under the head ‘Leasing Equipment Finance Income’ - Held that:- Prima facie, the adjudicating authority appears to have clearly erred in failing to comprehend that the taxable service during the relevant period (prior to 16.8.02) under Section 65(105)(zm) is specified to being a service provided or to be provided to a customer by a banking company or a financial company including a non-banking financial company in relation to banking and other financial services. The entity liable to service tax levy under Section 65 (105) (zm) is therefore a banking company or financial company including a non-banking financial company. Where however banking and other financial services as defined in Section 65(10) of the Act are provided by an entity which does not answer the description of the enumerated entities which alone are liable to tax for having provided the taxable service, there would be no liability. For tax liability to enure there should thus be a confluence between the specified entity and the specified service. This connect which is integral to the liability to tax is prima facie absent in the present case as the petitioners claim to not being either a banking company, a financial company or even a non-banking financial company during the relevant period i.e. prior to 16.8.02 , is not disputed - stay granted.
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