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TMI Blog2018 (11) TMI 1673X X X X Extracts X X X X X X X X Extracts X X X X ..... Banking Regulation Act, 1949. The appellant provides banking and other financial services and for the said purpose, is registered with the Service Tax Department under the taxable category of "Banking and other Financial Services", classifiable under Section 65(105)(zm) read with Section 65(12) of the Finance Act, 1994. For providing such taxable service, the appellant discharged service tax liability. In this case, the Reserve Bank of India (RBI) has appointed the appellant as their agent for receiving payments and making payments on behalf of the Government of India and dealing with other Government transactions. The agreement entered into between RBI and the appellant provides that the latter should perform the assigned activities in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Bank vs. Commissioner of Service Tax, Bangalore - 2012 (28) STR 369 (Tri.-Ahmd.). 4. On the other hand, learned AR appearing for Revenue reiterated the findings recorded in the impugned order. 5. Heard both sides and perused the records. 6. The short question involved in this appeal for consideration by the Tribunal is, whether service tax is payable by the appellant on the commission received from RBI for carrying out activities of maintaining the accounts of Central and State Governments in the capacity of an agent of RBI under the taxable head of "Banking and other Financial Services". 7. We find that the issue arising out of the present dispute is no more open for any debate in view of the decision of this Tribunal in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tuted under RBI Act, 1934, and is banker of the nation. As per Section 20 of the RBI Act, the RBI is mandated to accept the monies for the account of Government of India and to make payment and other activities like foreign exchange remittances and other banking operations including the management of debt of the Govt. of India. 7.2 The provisions of Section 21 of the RBI Act has categorically stated that right to transact Govt. transaction in India is only given to RBI. The said section is reproduced :- "21. Bank to have the right to transact Government business in India. - (1) The (Central Government) shall entrust the Bank, on such conditions as may be agreed upon, with all (its) money, remittance, exchange and banking transactions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in this regard, appoint the National Bank, or the State Bank, or a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of undertakings) Act, 1970 (5 of 1970), or a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), as its agent at all places, or at any place in India for such purposes as the Bank may specify. (2) When any bank is appointed by the Bank as its agent under sub-section (1) to receive on behalf of the Bank any payment required to be made into the Bank, or any bill, hundies or other se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecified 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 No. 22/2006-S.T., RBI would be l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trued liberally once it is concluded that benefits the notification is applicable. We do not find any merits in the said submission made by the learned DR 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 judgment of the Apex Court as cited by learned AR may not be applicable in the facts of this case. In our view the reliance placed by the learned Commissioner (AR) in the case of Uttam Industries (su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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