TMI Blog2014 (9) TMI 783X X X X Extracts X X X X X X X X Extracts X X X X ..... f ‘sovereign’ service. Service provided by RBI or the assessee under authorisation of the RBI does not also fall within the ambit of Articles 285 and 289 of the Constitution. The power to grant exemption from the liability to tax is conferred on the Central Government under Section 93 of the Act in plenitudinous terms. Such exemption may be granted either in a specific case or in respect of a generality of cases, with or without conditions. In the exercise of such broadly conferred power, the Central Government issued Notification No. 22/2006-ST, clearly enumerating the transactions, the taxable services and the provider or recipient of services, in expressly specified circumstances, which alone are notified to be eligible to the immunit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nk of India (RBI) under provisions of the Banking Regulation Act, 1949. The RBI in exercise of its authority conferred by Section 45 of the Reserve Bank of India Act, 1934 appointed the assessee as an agent, inter alia to receive remittances of taxes on RBI s behalf to the credit of the consolidated fund. For executing this function RBI paid a commission to the assessee. The commission was treated by Revenue as the consideration received for rendition of the taxable Banking or Financial Service . The assessee remitted service tax on an assumption of its liability. Later, assessee on the premise that it was not liable to remit tax in view of Notification No. 22/2006-ST dated 31.5.2006, applied for refund of the service tax remitted. 4. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... L-343-CESTAT-MUM, support the view recorded in the impugned lower appellate order. 8. Revenue seeks stay of operation of the impugned order since qua that order there arises the liability to refund the service tax remitted by the assessee. Ld. Consultant for the assessee would however contend that since the impugned order of the ld. Appellate Commissioner is impeccable in view of the Division Bench judgement of this Tribunal in M/s Canara Bank, there is no justification for interdicting the refund, by a stay order. 9. We have given anxious consideration to the rival contentions and have carefully perused Notification No. 22/2006-ST and the judgement in M/s Canara Bank Ltd. 10. The contention of the ld. Consultant representing the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in favour of the assessee by the judgement in M/s Canara Bank). 14. The power to grant exemption from the liability to tax is conferred on the Central Government under Section 93 of the Act in plenitudinous terms. Such exemption may be granted either in a specific case or in respect of a generality of cases, with or without conditions. In the exercise of such broadly conferred power, the Central Government issued Notification No. 22/2006-ST, clearly enumerating the transactions, the taxable services and the provider or recipient of services, in expressly specified circumstances, which alone are notified to be eligible to the immunity to tax. It is a settled principle and one that is too well established, that exemption Notifications ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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