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2020 (3) TMI 751 - AT - Service TaxLevy of service tax - interest income - banking services - safe-keeping of gold in their vaults - profit earned by the appellant which is a difference between the sale price of gold to their customers and purchase price of gold from Union Bank of Switzerland or MKS Finance - whether to be considered as consideration for charging service tax or not? - HELD THAT:- The onus was on Revenue to identify the consideration, if any, received by appellant for providing service. Without any consideration there is no service tax payable. We therefore set aside the impugned orders for demand in all the appeals in respect providing Safe Vault Service and allow the appeals in respect of safe vault services. Demand of service tax on interest - providing metal as loan to the customers - The Revenue is of the opinion that only if the loan is in the form of Indian rupee and interest is earned on that, then alone under the provisions of Valuation Rules or Section 66D of Finance Act, 1994 - Held that:- interest is not to be treated as part of consideration for determination of service tax. - We do not find any support from any of the provisions of law for such contention by Revenue. There is no provision in the law to hold that interest identified by Valuation Rules or Section 66 is interest only on cash loan. The service tax confirmed on interest earned by the appellant by providing metal as loan is not sustainable - appeal allowed - decided in favor of appellant.
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