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2021 (8) TMI 637 - AT - Service TaxCENVAT Credit - input service exclusively used for providing exempt services - Banking and other Financial Service - Collateral Management charges - levy of service tax on the interest earned by the bank on loans/ advances - HELD THAT:- Giving of loans is not a service, rather it is an activity of the Bank in which money in real terms which is akin to goods, is given to borrower. Further, for the reason that interest earned by the Bank on loans is not liable to tax, the show cause notice alleged that giving of loan is an exempt service. Further, the SCN have been issued after more than 32 months from the last date when the return was due from the financial year ending 31.03.2010. The show cause notice is bad for invoking the extended period of limitation. There is no suppression of facts or contumacious conduct on the part of the appellant. Appeal allowed - decided in favor of appellant.
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