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2018 (11) TMI 1673 - AT - Service TaxBanking and other Financial Services - commission received from RBI for carrying out activities of maintaining the accounts of Central and State Governments in the capacity of an agent of RBI - liability of service tax - HELD THAT:- The issue arising out of the present dispute is no more open for any debate in view of the decision of this Tribunal in the case of State Bank of Patiala [2016 (10) TMI 800 - CESTAT NEW DELHI]. The Larger Bench of the Tribunal in the said decided case has held that scheduled bank is the agent of RBI under Section 45 of the Reserve Bank of India Act, 1934 and thus, should be entitled for exemption under Notification No.22/2006-S.T. dated 31.05.2006 from payment of service tax on taxable services provided to or by RBI. It has further been held that as an agent of RBI, since the scheduled bank is transacting sovereign Government business, the same should not be subjected to levy of service tax. Appeal allowed - decided in favor of appellant.
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