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2024 (1) TMI 6 - CESTAT KOLKATALevy of service tax - Services retendered on behalf of state government - Banking and Financial Services - receiving service charges @1% of the total salary disbursed in respect of two primary schools - Extended period of limitation - HELD THAT:- There is no specific exemption provided under 'Banking and Financial Services' for the services rendered by the banks to state governments. Hence, the contention of the Appellant is not acceptable and the service charges collected are liable to pay service tax under the category of 'Banking and financial Services' as defined under section 65(12) of the Finance Act, 1994. Extended period of limitation - suppression of facts - HELD THAT:- The entire demand has been confirmed in the impugned order based the information available in the balance sheet. The department has not brought in any evidence to substantiate the allegation of suppression. Accordingly, the demand confirmed in the impugned order by invoking the extended period is not sustainable. The Appellant is liable to pay service tax, if any, on the normal period of limitation, along with interest. Demand of service tax - receipts of the Appellant from Agricultural Insurance Company of India Ltd. for collection of crop insurance premium from cultivators and/or agriculturists under National Agricultural Insurance Scheme - HELD THAT:- It is observed that such services are exempted under Notification 3/2000-ST dated 06.07.2000 - the decision cited in the case of SHRI RAJKOT DISTRICT CO OPERATIVE BANK LTD VERSUS COMMISSIONER OF CENTRAL EXCISE & ST, RAJKOT [2023 (6) TMI 1347 - CESTAT AHMEDABAD], is squarely applicable in this case, where it was held that the appellant are entitled for the exemption notification 3/2000-ST and not liable to pay any service tax on the commission received in relation to general insurance under government’s various schemes - the demand confirmed in the impugned order on this count is not sustainable. Demand of service tax - service charges deducted by the out station banks for the collection of out station cheques - HELD THAT:- The Appellant has not received any money on account of collection of out station cheques. The service charges were deducted by the out station banks on which no service tax payable by the Appellant. Accordingly, we hold that the demand made in the impugned order on this count is not sustainable. Demand confirmed on the amount of Rs.43,500/- deducted by State Bank Of India, Midnapore Branch from the accounts of appellant as banking cash transaction tax - HELD THAT:- It is observed that the amount wrongly deducted was credited to their account later. Hence, no service tax payable on this amount. Accordingly, the demand of service tax on this amount is not sustainable. Appeal disposed off.
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