TMI Blog2016 (11) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... s enumerated in sub-clauses (i) to (vii) specified in the definition set out in Section 65(33a); and all these transactions are neither impliedly covered nor inherently subsumed within the purview of credit card services defined in Section 65(10) or (12) as part of the BOFS. Section 65(33a) is neither intended nor expressed to have a retroactive reach i.e., w.e.f. 16.7.2001. Services enumerated in these sub-clauses are not implicit in the scope of credit card services. A Merchant/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. ME discount, by whatever name called, represen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enerates the bill of the concerned card holder with the help of the machine installed by the Bank at their premises and produces copy of the bill to the bank for payment, where 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 services provided by them on the value of discount/commission retained by the banks which constitutes the value of taxable service. Accordingly, show cause notices were issued to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the credit card services were specifically included as a separate service only w.e.f 1.6.2005. Revenue seeks to levy service tax by including such services under Banking and Other Financial Services (BOFS) for the earlier period. She further submitted that the matter stands decided in their favour by the decision of the Larger 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 card, debit car ..... X X X X Extracts X X X X X X X X Extracts X X X X
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