Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

Commr. of C.E. Customs & Ser Tax Versus M/s Federal Bank Limited

2016 (3) TMI 354 - SUPREME COURT

Business auxiliary service - services provided by the Banks for collection of telephone bills, collection of insurance premium on behalf of the client companies - Held that:- Clause (12) of Section 65 covers all charging services rendered by the Banks. - when cash management services stood excluded from the purview of service tax at the hands of the Bank until 31.05.2007, the authorities cannot levy service tax on an activity which is essentially cash management service, by taking aid of other g .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. 7058-7060/2011, C.A. No. 7061/2011, SLP(C) No. 36974/2012 & C.A. No. 613/2013 - Dated:- 18-2-2016 - MR. SHIVA KIRTI SINGH AND MRS. R. BANUMATHI, JJ For the Petitioner : Mr. K. Radhakrishna, Sr. Adv., Mr. Rajiv Nanda, Adv., Ms. Rashmi Malhotra, Adv., Mr. B. Krishna Prasad, AOR And Ms. Shweta Garg, Adv. For the Respondent : Mr. M. P. Vinod, AOR, Mr. Atul Shankar Vinod, Adv., Mr. Kunal Verma, AOR, Ms. Yugandhara Jha, Adv., Prasanna Mohan, Adv., Mr. M. P. Devanath, AOR, Mr. Vivek Sharma, Adv. And .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

also been decided on the basis of ratio laid down in the aforesaid judgment under appeal. The moot question of law falling for determination is whether the services provided by the respondent - Bank such as collection of telephone bills, collection of insurance premium on behalf of the client companies are liable to service tax under the category business auxiliary service as defined under Section 65(19) of the Finance Act, 1994 (hereinafter referred to as the Act ). The High Court has agreed wi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nt service , the term not defined under the Act, was not very clear, the High Court has taken note of clarification contained in the Circular issued by the Central Board of Excise and Customs (CBEC) dated 01.06.2007. The relevant part of that clarification letter is as follows: At present cash management is specifically excluded from the scope of this service. Specific exclusion of cash management is being omitted. Consequently, cash management services will be leviable to service tax under this .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ent Sciences, Vol.3(12), 15-17, December (2014). A perusal of the write-ups supports the concept and meaning of cash management services appearing in the clarification letter of the CBEC dated 01.06.2007. It is not in dispute that under Clause (12) of Section 65, there was a specific mention in sub-clause (v) to the effect that the banking and other financial services means asset management including portfolio management, all forms of fund management, pension fund management, custodial, deposito .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nly a service which is incidental or auxiliary to any activity specified in sub-clauses (i) to (vi), but those activities in turn do not specifically relate to banking and other financial services. Rather such banking and other financial services are specifically covered by clause (12) of Section 65. In that view of the matter, the High Court held that Clause (12) of Section 65 covers all charging services rendered by the Banks. The High Court is further of the view that when cash management ser .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version