TMI Blog2019 (10) TMI 692X X X X Extracts X X X X X X X X Extracts X X X X ..... ned order dated 27.05.2019 passed by the Commissioner (Appeals) whereby the Commissioner (Appeals) has confirmed the demand of interest in terms of Section 11AA of Central Excise Act. 2. Briefly the facts of the present case are that the appellant is engaged in providing taxable services under the category of banking and other financial services during the relevant period and has been paying the Service Tax on all taxable services and also filing the Service Tax Returns. The bank is acting as an agent of Reserve Bank of India for carrying out various Government transactions involving receipt and payment on behalf of Central and State Governments and also receives commission known as agency commission from RBI for carrying out the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rh v. State Bank of Patiala, 2016-TIOL-2849-CESTAT-DEL-LB, the appellants are not liable to Service Tax in relation to Government business. She further submitted that the services rendered by the RBI is not liable to Service Tax being covered under the negative list and since the appellants are the agent of RBI while performing the Government transactions therefore they are also not liable to pay Service Tax and is also covered under the negative list. She further submitted that as per the Larger Bench, they are not liable to pay Service Tax but since the RBI vide their letter dated 04.11.2016 has asked them to pay the Service Tax and seek reimbursement of the same from them. Therefore, in compliance with that direction, the appellant had r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I is not liable to Service Tax on Government business. It is pertinent to reproduce the relevant finding of the Larger Bench which is recorded in Para 7.7 and is reproduced herein below. We may also look at the present controversy from another angle. State Bank of Patiala has been appointed by RBI as its agent under Section 45 of the RBI Act. RBI itself has been entrusted by the Central Government to transact Government business. Hence, once State Bank of Patiala has been appointed as agent of RBI, it is transacting Government business which is in the nature of a sovereign function performed on behalf of the Government and hence not liable to Service Tax. 6.1. Further, I find that the appellant in compliance of the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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