Case Laws
Acts
Notifications
Circulars
Classification
Forms
Manuals
Articles
News
D. Forum
Highlights
Notes
🚨 Important Update for Our Users
We are transitioning to our new and improved portal - www.taxtmi.com - for a better experience.
⚠️ This portal will be discontinued on 31-07-2025
If you encounter any issues or problems while using the new portal,
please
let us know via our feedback form
so we can address them promptly.
Home
2023 (5) TMI 137 - SCH - Service TaxExemption from payment of Service tax - commission received by the respondent-scheduled Banks in the Reserve Bank of India for rendering banking or financial services - applicability of N/N 22/2006-ST dated 31.03.2006 - HELD THAT - The tribunal referred the issue to a larger Bench in view of differing opinions rendered by various Benches. By the impugned orders the Tribunal concluded that the services rendered by the Scheduled Banks as statutory agent under Section 45 of the Reserve Bank of India Act 1934 and also the other activities of the Scheduled Banks involving statutory functions on behalf of the Reserve Bank of India were not taxable with regard to the terms of the notification. The opinion of the findings of the CESTAT are in accordance with the judgment of this Court in STATE OF MADRAS VERSUS THE CEMENT ALLOCATION AND CO-ORDINATING ORGANISATION 1971 (9) TMI 161 - SUPREME COURT . The Court had said on that occasion that the acts of the agent are also attributable to the principal. This principle is also embodied in Section 65 (7) of the Finance Act 1994. This Court is of the opinion that the reasoning of the tribunal with respect to the activities of the scheduled Banks so far as scheduled banks perform activities as statutory agent of the Reserve Bank of India under Section 45 of the Reserve Bank of India Act 1934 are concerned do not call for any interference. The appeals are accordingly dismissed.
|