TMI Blog2020 (3) TMI 751X X X X Extracts X X X X X X X X Extracts X X X X ..... he appeals in respect providing Safe Vault Service and allow the appeals in respect of safe vault services. Demand of service tax on interest - providing metal as loan to the customers - The Revenue is of the opinion that only if the loan is in the form of Indian rupee and interest is earned on that, then alone under the provisions of Valuation Rules or Section 66D of Finance Act, 1994 - Held that:- interest is not to be treated as part of consideration for determination of service tax. - We do not find any support from any of the provisions of law for such contention by Revenue. There is no provision in the law to hold that interest identified by Valuation Rules or Section 66 is interest only on cash loan. The service tax confirmed o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nion Bank of Switzerland or MKS Finance and at that point of time purchase the gold which is already in their physical custody. Immediately on purchase of gold, the same gold is delivered to their customers . It appeared to Revenue that after the import of gold and till such time customer is identified, gold is being held by appellant and during said period the ownership of gold is with the Union Bank of Switzerland or MKS Finance, as the case may be, and therefore appellant is providing Safe Vault Service which is part of other financial services to Union Bank of Switzerland or MKS Finance as the case may be. Therefore, proceedings were initiated and show cause notice dated 16.07.2010 and other show cause notices were issued. For issue of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n since separate value for safe-keeping of gold has not been furnished either in the agreement or by the taxpayer themselves during the adjudication proceedings . 5. Heard Ld. A.R Ms.Sridevi.T who has supported the impugned orders. 6. After considering the submissions from both sides and on perusal of record, we note that Revenue does not have any figure of the consideration alleged to have been received by the appellant from the foreign suppliers of gold for providing safe vault service which is very clear from the finding of the original authority in para-26 as reproduced above. We are, therefore, of the opinion that the Revenue did not have any case for raising demand of service tax on providing safe vault service on the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted that contention of Revenue is that at sub-rule (2) clause (iv) of Rule 6 of Service Tax (Determination of Value) Rles, 2006 which provides that interest on loan shall not be included in assessable value deals only with interest on cash loan given. He further submitted that contention of Revenue in the present case is that since metal was given as loan the said provisions are not applicable and therefore, Revenue has demanded service tax on interest. He has submitted that there is no such distinction in the Act on interest. 9. Ld. A.R has supported the impugned orders. 10. After considering the submissions from both sides, and on perusal of record, we note that the Revenue is of the opinion that only if the loan is in the form ..... X X X X Extracts X X X X X X X X Extracts X X X X
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