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2014 (12) TMI 504 - AT - Service TaxWhether the commission/discount earned by the acquiring bank from the Merchant Establishment is liable to service tax under the category of banking and financial services for the period prior to 01.05.2006 - Held that:- as the correctness of the earlier decision in ABN Amro [2011 (7) TMI 312 - CESTAT, NEW DELHI] was doubted in the case of Commissioner of Service Tax vs. HDFC Bank Ltd. (2013 (9) TMI 630 - CESTAT MUMBAI) and the matter was referred to Larger Bench on the following points of law for consideration:- Whether the introduction of the new, comprehensive definition of "credit card, debit card, charge card or other payment card service" vide section 65 (33a) read with section 65 (105)(zzzw) by the Finance Act, 2006, is substantive and seeks to levy all the transactions covered by use of Credit/Debit/Charge Card or is in continuation of the levy under Section 65 (10) or (12), as the case may be, as held in the case of ABN Amro decision in so far as credit card services are concerned? Whether the sub-clause (iii) in the definition of taxable service viz. "credit card, debit card, charge card or other payment card service" in section 65 (33a) can be said to be applicable retrospectively, i.e. from 16 July 2001 when section 65 (72) (zm) became effective? Can ‘merchants / merchant establishments' be considered as ‘customer' as envisaged in Section 65 (72)(zm) of the Finance Act, 1994 as it stood prior to 1-5-2006? Whether Merchant Establishment Discount can be said to be received "in relation to" credit card services when in fact in a particular transaction, the Acquiring bank receiving ME Discount may not have issued that particular credit card at all? (72)(zm) of the Finance Act, 1994 as it stood prior to 1-5-2006? Matter to be placed before the Hon'ble President, CESTAT for constitution of the Larger Bench.
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