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2016 (9) TMI 1111 - CESTAT NEW DELHIService tax liability - banking and financial service - income earned towards leasing out of certain machines - agreement was for providing lease/ right by the respondent to the third party for use of plant and machinery for a period of five years - ownership of the assets and effective control is with the respondent - Held that:- a lease is classified as financial lease if the lesser transfers the owner of the assets to the lessee by the end of lease term. We note that the ld. Commissioner (Appeals) had examined the various terms of agreement to arrive at a conclusion that the leasing of equipment in the instant case cannot be regarded as a finance lease as per the Accounting Standards. We are in agreement with the said findings. We further note that the tax liability on the respondent was sought to be sustained on the ground that they are a “body corporate” and hence covered by the definition. We note that the definition mentions “banking company” or “financial institution” and / “non-banking finance company”. The principal objective of all these shall be financial dealings. An industrial concern is not covered by the scope of the definition. Reliance placed by the ld. Commissioner (Appeals) on the Board Circular dated 09.07.2001 and dt. 04.07.2006 is appropriate to apply the scope of other body corporate for service tax purpose under “banking and financial services”. Therefore, we find no reason to interfere with the impugned order. - Decided against the Revenue
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