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2015 (10) TMI 2464 - AT - Service TaxLiability of Service Tax – Whether Setting up MICR-CPC to attend cheque clearance of Financial Institutions is Banking and Other Financial Services or not? – Appellant contended that as per definition Banking and Other Financial Services, there has to be a client or customer, which is absent herein - Cheque clearance activity rendered to other member Banks and not to customers – There was a bonafide conduct and no intention to evade tax – Revenue contends that liability of interest arises whether there is intention to evade tax or not. Held That:- CBEC vide letter dated 25.02.2005 will indicate that amount collected as charges for clearing cheques or clearing house, under Banking and Other Financial Services, to that extent appeal fails on merits - On limitation also appellant could have contested the matter - There was no intention on appellant's part of evading tax liability, which would mean that demand of service tax liability can be only within the limitation period of one year - Appellant is not liable to discharge any interest on amount of service tax liability paid, appeal to that extent is allowed – Decision made in case of Gujarat Narmada Fertilizers Co. Ltd [2012 (4) TMI 309 - GUJARAT HIGH COURT] followed – Decided partially in favour of assessee.
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