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2018 (7) TMI 1670 - AT - Service TaxScope of SCN - Banking and Other Financial Services - appellants is a non-banking financial institution - the basic allegation is that the assessee being a non-banking financial institution is engaged in lending activity and, therefore, their services are classifiable under bank and other financial services with effect from 10.09.2004. Held that:- Only a company, corporation or cooperative society would fall within the definition of non-banking financial institution. There is no allegation in the Show Cause Notice that assessee is liable to pay service tax as they are rendering ‘Banking and Other Financial Services’ as they are included in the category “any other person” - the categorical allegation in the Show Cause Notice is that assessee is a non-banking financial institution and therefore is liable to pay service tax for the Banking and Financial Services. This being so, the Commissioner has traversed beyond the scope of Show Cause Notice to confirm the demand for the period 01.05.2006 to 30.04.2007. The Commissioner has rightly dropped the demand for the period from 01.10.2004 to 30.04.2006 and for 01.05.2007 to 30.11.2009 when the words “any other person” was not part of the definition under Section 65(105)(zm). The Tribunal had analyzed a similar issue in the case of Grama Vidiyal Trust [2018 (6) TMI 584 - CESTAT CHENNAI] has held that As it has already been found that the appellants would not fall within the ambit of ‘banking company or financial institution’ for the purposes of Section 65 (12) ibid, that allegation in the SCN and its confirmation in the impugned order cannot then be sustained. Appeal allowed - decided in favor of appellant.
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