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2023 (6) TMI 1197 - AT - Service TaxLevy of Service Tax - banking and other financial services (BOFS) - Body corporate - corporate guarantee commission received by the respondent for providing corporate guarantees for their subsidiary company PT Jindal Stainless Indonesia (Jindal Indonesia) - export of services or not - HELD THAT:- The respondent does not fit in the definition of body corporate because they are not engaged in providing banking services and this issue has been clarified by the board circular dated 04.07.2006 wherein it has been clarified that the word ‘any other person” in Section 65(105)(zm) has to be read with principle of ejusdem generis with the preceding words. Further, in the case of M/S BANSWARA SYNTEX VERSUS CCE, JAIPUR [2009 (7) TMI 85 - CESTAT, NEW DELHI], the Tribunal while considering the similar issue of whether release of land building as well as machinery would only come under banking and other financial services or otherwise it was held that such amount received as lease rent would not be covered under Section 105 of banking and other Financial Services in the Finance Act, 1994. Since the services in question has been rendered outside India, the same is not taxable as they qualify as export of services in terms of rule 3 of export of service Rules, 2004. Extended period of Limitation - HELD THAT:- The whole issue relates to interpretation of the law because the Department was not certain of the taxability of the impugned services and the definition of banking and financial service was changed from time to time. Hence the extended period cannot be invoked and by that entire demand is barred by limitation as the demand pertains to the period 2005-2008 whereas the show cause notice was issued on 24.09.2010 which is beyond the normal period of limitation. There is no infirmity in the impugned order passed by the Ld. Commissioner - Appeal dismissed.
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