TMI Blog2015 (10) TMI 2464X X X X Extracts X X X X X X X X Extracts X X X X ..... ount collected as charges for clearing cheques or clearing house, under Banking and Other Financial Services, to that extent appeal fails on merits - On limitation also appellant could have contested the matter - There was no intention on appellant's part of evading tax liability, which would mean that demand of service tax liability can be only within the limitation period of one year - Appellant is not liable to discharge any interest on amount of service tax liability paid, appeal to that extent is allowed – Decision made in case of Gujarat Narmada Fertilizers Co. Ltd [2012 (4) TMI 309 - GUJARAT HIGH COURT] followed – Decided partially in favour of assessee. - Appeal No. ST/356/11-Mum - Final Order No. A/3288/2015-WZB/STB - Dated:- 21- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The adjudicating authority after following the due process of law, did not agree with the contentions raised by the appellant, confirmed the demand of service tax with interest; dropped the proceedings initiated for imposition of penalties. 3. Learned Chartered Accountant would submit that the definition of Banking and Other Financial Services is not applicable in the case in hand as appellant is charging One Rupee per cheque for executing the cheque processing of various Banks and Financial Institutions. He would submit that on reading the definition Banking and Other Financial Services, there has to be a client or customer, which in the case in hand is absent as they were extending the cheque clearance activity to other member Banks ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pective of whether there is intention to evade tax or otherwise. 5. We have considered the submissions made at length of by both sides and perused the records. 6. On perusal of records, we find that the issue involved in this case is regarding the taxability of the services rendered by the appellant as to clearing of cheques of member banks and collecting charges for the same and whether this is covered under category of Banking and Other Financial Services or otherwise. 7. Undisputed facts are appellant has been appointed, during the material period, as clearing house for the state of Gujarat; collects an amount as charges for the Banks for clearing of cheques; the issue was under dispute, and Law ministry was consulted, before in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Aggrieved by such an order revenue preferred an appeal before Hon'ble High Court. Hon'ble High Court in their judgment at paragraph number 11, 12 and 13 held that the order of the Tribunal was correct. With respect, we reproduce the said paragraphs. 11. In the present case, when the period of limitation had already expired and when the extended period beyond one year was not available to the department as held by the Commissioner himself in his order in original, to our mind the respondent was not liable to pay even the basic duty. B ut for the respondent voluntarily making payment of such duty short-paid, it was not open for the Department to recover the same under sub-Section (1) of Section 11A of the Act. In absence of any s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Legislature while sub-Section(2B) was introduced in Section 11A of the Act. 10. It can be seen from the above reproduced relevant paragraphs the ratio would squarely apply in the case in hand, as on limitation, we do find that the appellant could have succeeded and the findings of the adjudicating authority in paragraph no. 39 of the impugned order also indicates that there was no intention on appellant's part of evading the service tax liability, which would mean that demand of service tax liability can be only within the limitation period, that is the one year from the date of issuance of show cause notice. 11. In view of the forgoing respectfully following the authoritative judicial pronouncement on similar facts, we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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