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TMI Blog2013 (12) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... their name and logo minted on the coins and such coins are supplied by M/s Union Bank of Switzerland and M/s. MKS Finance, Geneva to the applicant. These coins were sent on consignment basis to the applicant, who kept the goods in safe custody in their vaults. They had agreement with the foreign banks for keeping these goods in safe custody in the vaults of the applicant till the goods are purchased by the applicant for further sale to customers. As and when, the applicant found customers for sale of these coins, the applicant purchased coins as needed from the foreign banks and sold it to their customers. On this activity, the applicant was not paying any service tax since they considered the activity to be sale and purchase transactions. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Safe Vault Services for the two periods and amounts of Rs.1,66,97,727/- and Rs.55,11,583/- are confirmed as tax on interest charged. Interest also is demanded and penalties are imposed. Aggrieved by the orders, the applicant filed these appeals along with stay petitions. 3. Arguing for the applicant, the counsel for the applicant submits that they are in the business of buying gold coins from the foreign banks and selling it to their customers. Since this is a high value item this sale and purchase is on a consignment basis that is to say the foreign banks sends the goods to the applicant. The applicant keeps it with them without payment of consideration until the applicant is able to find customers wanting to purchase the coins from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Opposing the prayer, the learned Authorized Representative for the Revenue submits that the terms of the agreement between the foreign banks and the applicant will clearly show that the applicant had an obligation to maintain these goods which belong to the foreign banks till it was bought by the applicant in safe custody and the department has been asking the applicant about the charges for such services which the applicant had not disclosed and that is the reason why the demand is confirmed on the margin that accrues to the applicant in this process. In respect of gold lending services, he submits that the interest on loans has to be interpreted to mean interest on monetary loans as the expression is normally understood. The learned AR al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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