TMI Blog2015 (6) TMI 625X X X X Extracts X X X X X X X X Extracts X X X X ..... ctroi 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. 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. - CBEC was of the view that any services to fall under the category of banking and financial services, the expression 'any other person needs to be read "ejusdem generic" with the preceding words and the services are to be provided by any person should be similar to a bank or financial institution. In the case in hand, as is recorded by us, it is undisputed that appellant is not financial institution. - Decided in favour of Assessee. - Appeal No. ST/230/2009-Mum, ST/334, 335/2010-Mum - Final Order Nos. A/1353-1355/2015-WZB/STB - Dated:- 12-5-2015 - M V Ravindran, Member (J) And P S Pruthi, Member (T),JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. Vs. Commissioner of Service Tax, Mumbai - Appeal No. ST/332/09 has held what is a financial institution. He would also submit that the appellant cannot fall under the category of financial institution are a banking company 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 talks about services of collection of receivables. He would submit that appellant is collecting the receivables from the vehicles entering the city and supposed to pay octroi to the municipal bodies. He would submits that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ease period after making the lease payment;] [(ii) **** (iii) merchant banking services; (iv) Securities and foreign exchange (forex) broking, and purchase or sale of foreign currency, including money changing;] (v) asset management including portfolio management, all forms of fund management, pension fund management, [custodial, depository and trust services]; (vi) advisory and other auxiliary financial services including investment and portfolio research and advice, advice on mergers and acquisitions and advice on corporate restructuring and strategy; (vii) provision and transfer of information and data processing; and [(viii) banker to an issue services; and (ix) other financial services, namely, lending, issue of pay order, demand draft, cheque, letter of credit and bill of exchange, transfer of money including telegraphic transfer, mail transfer and electronic transfer, providing bank guarantee, overdraft facility, bill discounting facility, safe deposit locker, safe vaults; operation of bank accounts;] 10. We also find that the financial institution has been defined as under: (c) financial institution means any non-banking institution which ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tock 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 accordance with law . It can be seen from the above reproduced ratio that in order to get covered under the banking and financial services, an assessee has to be either a banking company or financial institution or a non-banking company or any other commercial concern rendering the various services as enshrined in the definition of banking and other financial services. Now we address the services covered under the definition. We find that the services rendered by the appellant, if any, will not fall under any category as indicated in the definition of banking and other financial service; it is the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a financial institution are liable to service tax under section 65(105)(zm) of the Finance Act, 1994. Department of Posts is not similar to a bank or a financial institution and hence does not fall within the category of any other similar service provider. (emphasis ours) It can be seen from the above reproduced clarification that CBEC was of the view that any services to fall under the category of banking and financial services, the expression 'any other person needs to be read ejusdem generic with the preceding words and the services are to be provided by any person should be similar to a bank or financial institution. In the case in hand, as is recorded by us, it is undisputed that appellant is not financial institution. 13. Since we have disposed the appeal on merits we are not recording any findings on the various other submissions made before us. 14. In view of foregoing and in the facts and circumstances of this case, we hold that the appellant assessee's appeal needs to be allowed and the impugned order in that appeal is liable to be set aside we do so; the impugned orders in Revenues appeal needs to be upheld. 15. Assessee's appeal allowed Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
