TMI Blog2016 (11) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... es under BOFS. Revenue authorities have taken a view that for the period prior to 1.6.2007 such services would be covered by BAS - whether the Revenue's view justified? Held that: - The deletion of the exclusion of cash management services is w.e.f 1.6.2007. The issue whether for the period prior to this date, such services can be charged to service tax under BAS stands decided by the Hon’ble Apex Court in the case of CST vs. M/s. Federal Bank Limited [2016 (3) TMI 354 - SUPREME COURT] where it was 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 serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... include cash management services. Cash management services were specifically included under Section 65 (12)(v) only w.e.f 1.6.2007 when its scope was expanded. Accordingly, their contention is that for the period prior to 1.6.2007 no service tax can be levied on this activity by bringing it under the category of BAS under Section 65(19). (ii) They have further submitted that the case has been decided squarely in their favour by the Hon ble Supreme Court in the case of CST vs. M/s. Federal Bank Limited: 2016 (42) S.T.R. 418 (SC). 2. Heard Smt. Lalitha Rameswaran, learned CA for the appellant as well as Smt. Ezhilmathi, DR appearing for the Revenue. 3. The learned DR fairly agrees that the issue stands decided in favour of the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gers and acquisitions and advice on corporate restructuring and strategy; (vii) Provision and transfer of information and data processing and (viii) Other financial services, namely, lending, issue of pay order, demand draft, cheque, letter of credit and bill of exchange, providing bank guarantee, overdraft facility, bill discounting facility, safe deposit locker, safe vaults, operation of bank accounts; (b) foreign exchange broking provided by a foreign exchange broker other than those covered under sub-clause (a). The deletion of the exclusion of cash management services is w.e.f 1.6.2007. The issue whether for the period prior to this date, such services can be charged to service tax under BAS stands decided by the Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Banks. The High Court is further of the view that when cash management services stood excluded from the purview of service tax at the hands of the Bank until 31-5-2007, the authorities cannot levy service tax on an activity which is essentially cash management service, by taking aid of other general charging heads, such as business auxiliary service. 12. Having considered the various provisions in the Act, we are in agreement with the views expressed by the High Court even for a further reason that Section 65A of the Act, while dealing with classification of taxable services, has clarified in sub-section (2) that when for any reason, a taxable service is, prima facie, classifiable under two or more sub-clauses of clause (105) of Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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