TMI Blog2012 (11) TMI 528X X X X Extracts X X X X X X X X Extracts X X X X ..... he SCN it has been clearly mentioned that the arrangement fees, agency fees, commitment fees or other fees are required to be paid under course of providing the above services for raising funds/loan on behalf of M/s Tata Steel Ltd. SCN also stated that on going through the agreements for providing loan or fund, it is found that different foreign institutions have been providing different service to M/s TATA in relation to the availment of loans or raising funds on behalf of M/s TATA. The above service provided by them is classifiable under Banking and other Financial services and taxable under clause (zm) of Section 65(105). Thus it prima facie appears that the appellants have been put to notice with regard to the activity undertaken by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Rs.8,05,24,006/- along with interest during the period 1.10.2005 to 31.1.2007 under the category of Banking and Financial Services under the reverse charge mechanism as provided for vide Section 66A of the Finance Act, 1994. The notice was adjudicated vide the impugned order and the demand was confirmed along with interest thereon and an equivalent amount of penalty was confirmed under Section 78 and a penalty was also imposed under Section 76 of the said Finance Act at the rate prescribed therein. Hence, the appellant is before us. 3. The learned Counsel for the appellant submits that in the show-cause notice issued to the appellant, the clause under which the above activity would come under taxable services of Banking and Financial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses the contentions of the appellant. He submits that even though the show-cause notice does not specify the clause under which the activity would come under the Banking and Financial Services, in para 4.3 of the show-cause notice, it has been clearly stated that the arrangements fees were paid for raising funds/loans on behalf of M/s Tata Steel Ltd. and hence, these are an integral part of the above services provided by the foreign financial institutions. Thus, the show-cause notice has clearly dealt with that how and why the activity undertaken comes under the category of Banking and Financial Service'. 4.1 As regards the contention regarding the limitation of time, the learned A.R. submits that the appellant had never indicated to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res. 5.1 As regards the contention of the appellant that they were not put on notice, inasmuch as the show-cause did not specify the specific clause under the Banking and Financial Services' under which the activity undertaken by them would be leviable of Service Tax, prima facie we do not find any force into this argument. In para 4.3 of the show-cause notice it has been clearly mentioned that the arrangement fees, agency fees, commitment fees or other fees as mentioned above are required to be paid under course of providing the above services for raising funds/loan on behalf of M/s Tata Steel Ltd. Hence, these are integral part of the above services provided by the foreign financial institutions. Further, in para 4.2 of the said notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service under Banking and Financial Services'. 5.2 As regards the contention that the arrangement of services is only intermediary services and is different from lending, we find that out of the 16 lenders who provided the syndicated loan, 10 lenders were also arrangers and these 10 lenders provided almost 95% of the loan to the appellant. In other words, the lenders themselves have acted as arrangers in bulk of the transactions and, therefore, it could not be stated that the arrangement' was different from lending' as there is a close nexus between the arranging for the loan and actual lending of the loan. Therefore, we are prima facie of the view that the activity undertaken by the appellant can be classified as Banking and Financia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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