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2013 (12) TMI 1123 - AT - Service TaxDemand of service tax - Classification of service - Banking and financial service - Held that:- As per Section 65(105) (zm) as it stood at the relevant time, the "taxable service" means any service provided or to be provided to a customer, by a banking company or a financial institution including a non-banking financial company, or any body corporate or commercial concern, in relation to banking and other financial services". The appellant is neither a bank or a non-banking financial company as defined in law. The appellant is also not a non-banking institution notified by the RBI whose primary business is of receiving deposits or lending money. Therefore, the appellant is not a service provider envisaged in law in respect of banking and financial services at the point of time. The appellant is a mere lessor of the land, plant and machinery owned by him. This Tribunal, in similar circumstances, in the case of GE India Industries (P) Ltd and Banswara Syntex, (2008 (7) TMI 29 - CESTAT, AHMEDABAD) held that if the agreement does not provide for transfer of assets at the end of the lease term during which monthly user charges are collected, and all risks and rewards incidental to ownership are not transferred, such leasing activities would not fall under the category of financial lease coming under the "banking and financial service" - Decided in favour of assessee.
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