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TMI Blog2015 (6) TMI 625X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal No. ST/230/2009 against the Order-in-Original No. 11/ST/2009 dated 30/07/2009. While Revenue is in appeal against Order-in-Appeal No. AKP/119/NSK/2010 dated 31.03.2010 & OIA No. AKP/118/NSK/2010 dated 31.03.2010. Since all the three appeals raised very same issue they are disposed by a common order. 2. Heard both sides and perused the records. 3. The assessee is aggrieved by the Order-in-Original on the ground that the adjudicating authority has confirmed demand of Approximately Rs. 53.74 lakhs under the category of "Banking and other Financial Services" for the period June 2007 to March 2008 and upholding the allegation and the show cause notice that appellant was undertaking cash management. Revenue is aggrieved by the Orders-in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y or a non-banking company accordingly, they would not be covered under banking and financial services. He would also submits that the cash management as defined in Law Dictionary is "efficient management of cash in a business in order to put the cash to work more quickly and to keep the cash in applications that produce income and collect all the cash put to them". He would submit that the reliance placed by the adjudicating authority on the CBEC Circular No. 83/1/2006-ST, dated 4.7.2006 is totally incorrect as also on TRU Letter No. 334/1/2007-TRU, dated 28.2.2007. 5. Ld. AR on the other hand would submit that the services rendered by the appellant is nothing but the cash management as per the Circular dt. 28.2.2007 which specifically ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities are of the view that such activity undertaken by the appellant would fall under the category of cash management as enshrined in the definition of banking and financial service. In order to appreciate the correct legal position, it is necessary to reproduce the said definition. [(12) "banking and other financial services" means - (a) the following services provided by a banking company or a financial institution including a non-banking financial company or any other body corporate or [commercial concern], namely :- (i) financial leasing services including equipment leasing and hire-purchase; [Explanation. - For the purposes of this item, "financial leasing" means a lease transaction where - (i) contract for lease is e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... non-banking institution which carries on as its business or part of its business any of the following activities, namely:- (i) the financing, whether by way of making loans or advances or otherwise, of any activity other than its own; (ii) the acquisition of shares, stock, bonds, debentures or securities issued by a Government or local authority or other marketable securities of a like nature; (iii) letting or delivering of any goods to a hirer under a hire-purchase agreement as defined in clause (c) of section 2 of the Hire-Purchase Act, 1972: (iv) the carrying on of any class of insurance business; (v) managing, conducting or supervising, as foreman, agent or in any other capacity, of chits or kuries as defined in any law which is fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant is registered as a stockbroker with the SEBI, which is a statutory requirement the appellant cannot be considered as a financial institution. If that be so, all stock brokers dealing in shares/securities would be financial institutions which is a totally wrong interpretation of the statutory definition of a financial institution. There is also no evidence available on record to show that the appellant has been registered under the RBI Act as a "Financial institution". In this factual and legal scenario, the conclusion of the lower authorities that the appellant is a financial institution as defined in the RBI Act cannot be sustained. Accordingly, we set aside the impugned order and allow the appeal with consequential relief, if any, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... undisputed as to the appellant is only collecting an amount as octroi the vehicles, in which goods transported and octroi liability arises. In our view this will not encompass ingredients of cash management. In the absence of any cash management activity undertaken by the appellant, we find that the services rendered by the appellant will not fall under the category of banking and financial services. 11. Yet another angle to this case is that CBEC vide Circular No. 83/1/2006-ST dated 4.7.2006 while clarifying as to the services provided by Department of Posts in respect of money orders, operation of bank accounts issue of postal orders etc. clarified as under:- "Banking and other financial services are defined under section 65(12). Such ..... X X X X Extracts X X X X X X X X Extracts X X X X
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