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2016 (10) TMI 800 - CESTAT NEW DELHI-LBEligibility of exemption - N/N.22/2006-ST dated 31.05.2006 - Banking or Financial service - collection of taxes and remittance to RBI - services rendered by scheduled bank to RBI - whether qua N/N. 22/2006-ST dated 31.05.2006, the commission received from the Reserve Bank of India by a scheduled bank for rendition of Banking or Financial service is entitled to exemption from service tax on the ground that the banking company providing such taxable service is an agent of the Reserve Bank of India and thus entitled to exemptions specified in clause (i) of N/N. 22/2006-ST dated 31.3.2006? - Held that: - Drawing power from Section 45, RBI appoints various national banks/public sector banks for collection of various taxes and making payment of pension etc. This would mean that various national banks are agents of the RBI. The Central Govt. of India by N/N. 22/2006-ST has given exemption from the payment of service tax of any taxable services provided to or by RBI either in India or under Reverse Charge Mechanism. In our view as the respondent assessee is an agent of RBI, exemption granted by notification No. 22/2006-ST, needs to be extended to respondent - if RBI is exempted from the service tax liability in respect of various services, its agent for doing such services also needs to be extended the same benefit. Assessee means a person liable to pay service tax and includes his agent. RBI a person liable to pay tax as an assessee but for exemption, will include their agents viz. Banks appointed under Section 45 of RBI Act, to execute functions of RBI. Decision in the case of M/s. Canara Bank Versus CST, Bangalore [2012 (6) TMI 274 - CESTAT, AHMEDABAD] relied upon where it was held that appellant is held to be eligible for exemption as an agent of RBI. Appeal dismissed - decided in favor of respondent.
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