TMI Blog2018 (11) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... vices provided or to be provided to any person by the Reserve Bank of India. Demand set aside - appeal allowed - decided in favor of appellant. - Appeal No. ST/1349/2010 - A/31191/2018 - Dated:- 20-8-2018 - Mr. M.V. Ravindran, Member (Judicial) And Mr. P. Venkata Subba Rao, Member (Technical) Shri S. Ananthan, CA (Representative) for the Appellant. Shri B. Guna Ranjan, Superintendent/AR for the Respondent. ORDER Per: P.V. Subba Rao. 1. The appellant herein is a nationalized bank with Head Quarters at Hyderabad. They carried out various Government transactions on behalf of the Central and the State Governments and have received commission from the RBI for these services known as agency services. A show ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel for the appellant vehemently argued as above. He further contended that earlier a show cause notice was issued for the same transactions demanding duty under Business Auxiliary Services and the demand was dropped. Thereafter this show cause notice was issued demanding duty under Banking and other financial services . He, therefore, contends that the department was fully aware of the nature of their activities and had themselves examined whether service tax was payable under Business Auxiliary services and found it was not. He further submits that the issue of taxability of commission received from the RBI by the banks has been finally settled by the Tribunal in the case of Canara Bank [2012 (6) TMI 274 (CESTAT-Ahmedabad)] (where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecified purposes as directed by Government; and the said Section also mandates that such Banks will be agents of RBI. As whether an agent will be eligible for exemption or otherwise is being contested in the appeal, in our view the question does not arise as Chapter V of the Finance Act, 1994, in Section 65 (7), the term assessee has been defined which is reproduced:- Section 65 (7) - Assessee means a person liable to pay the service tax and includes his agent 7.6 It can be seen from the above reproduced definition, the Finance Act itself acknowledges the fact that the person who is liable to pay service tax includes its agent which would mean in the case in hand that in the absence of Notification 22/2006-ST, RBI would be liab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uded that benefits the notification is applicable. We do not find any merits in the said submission made by the learned D.R. inasmuch as that the definition of assessee in the Finance Act in Section 65(7) clearly states that assessee means a person liable to pay service tax and includes his agent. In the case in hand RBI a person liable to pay tax as an assessee but for exemption, will include their agents viz. Banks appointed under Section 45 of RBI Act, to execute functions of RBI. Accordingly, the ratio of the judgement of the Apex Court as cited by learned A.R. may not be applicable in the facts of this case. In our view the reliance placed by the learned Commissioner (A.R.) in the case of Uttam Industries (supra) may also not carry the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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