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2016 (12) TMI 290 - AT - Service TaxLevy of service tax - activity of bill discounting undertaken by the appellant for which they have received consideration in the form of discount - denial of benefit of the N/N. 29/2004-ST dated 22.9.2004 - Held that: - The case of the appellant is that service tax becomes payable on this activity only when the service is rendered by banking company or financial institution including NBFC or any other body corporate or commercial concern. Their submission is that though they are a body corporate, still they will not be liable for service tax inasmuch as they cannot be classified under the category of banking company or other financial institutions. We are not in agreement with this view. The definition of banking and other financial services makes it applicable to any of the following:(a) Banking company (b) Financial institution including NBFC. (c) Any other body corporate (d) Or commercial concern - Since the various categories are separated by 'Or'it is clear that the service tax will be applicable to all. It is not disputed that the appellant is a body corporate, since they are a limited company. Hence we are of the view that levy of service tax will be applicable to the appellant. Benefit of N/N. 29/2004-ST dated 22.9.2004 - Held that: - the invoices clearly indicate the amount of the bill of exchange, discounting charges and the net amount paid to the seller. In some cases, it has been shown as interest. The benefit of the exemption will be available whether the consideration is described as interest or discount. This has been specifically held by the Tribunal in the case of UCO Bank [2014 (9) TMI 820 - CESTAT KOLKATA]. The documents submitted would require verification before allowing the benefit of exemption No. 29/2004-ST dated 22.9.2004. For this purpose, we remand the matter to the original adjudicating authority, who shall allow the benefit of the scrutiny of the documents. The appellant is directed to produce all relevant documents to establish their claim for the benefit of the notification. Appeal allowed by way of remand.
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