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TMI Blog2016 (11) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... Lalitha Parameswaran, CA, Mr. Mohammed Yousuf, AR For the Respondent ORDER Per V. Padmanabhan The present appeals are filed by Revenue against the impugned order passed by the Commissioner of Central Excise and Service Tax, Large Taxpayers Unit, Bangalore, dropping the demands of service tax on commission received by the Banks on credit card transactions. 2. Revenue has challenged the orders b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon the assessee reimburse the amount less a certain percentage of discounts which is retained by the bank. The discount rate is determined by the bank. (ii) Each transaction by the card holder in the aforesaid manner entails reimbursement by the assessee to the merchant establishment, with a discount which accrues to the bank. The assessee is liable to pay service tax on the credit card servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from merchant establishment/banks does not constitute value of taxable services. It was pointed out that credit card/debit card/charge card/other payment card service was given the status of separate category of taxable service with effect from 1.5.2006 by the Finance Act, 2006 and the discount/commission was included in the value of taxable services. The Commissioner relied upon Board s Circular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Bench in the case of Standard Chartered Bank vs. CST, Mumai-I vide Interim Order No.162/2015 dated 14.8.2015. 4. Learned DR also fairly agrees that the decision of the Larger Bench settles the issue in favour of the respondents. 5. The Larger Bench decided the issue as follows: (a) On point No.(i) in the order of reference, we hold that introduction of comprehensive definition of credit car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rchant/Merchant Establishment is a customer in the context of credit card services enumerated in Section 65(72)(zm), subsequently Section 65(105)(zm) and a fortiori an acquiring bank is a customer of an issuing bank. (d) On point No.(iv), we hold that ME discount, by whatever name called, representing amounts retained by an acquiring bank from out of amounts recovered by such bank for settlement ..... X X X X Extracts X X X X X X X X Extracts X X X X
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