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2013 (12) TMI 45 - CESTAT CHENNAIDemand of service tax - Safe Vault Services - Service tax on the margin between the purchase price from the foreign bank and the sale price to the customers - Held that:- After going through the agreement of the applicant with the foreign banks, it comes out that the nature of transaction between the foreign banks and the applicant is that of sale and purchase and there is a further sale to the customers. That being the case, there is no justification at all for demanding service tax on the margin which they earn on the transaction. The department during investigation has made a request to quantify the amount and the charges the applicant would charged for safe vaults of comparable size, which the applicant has not furnished - provisions of Rule 6 (2) (iv) of Service Tax (Determination of Value) Rules, 2006 will not apply only to monetary loan and not to loan given in the form of gold - applicant directed to make a pre-deposit - Partial stay granted.
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