TMI Blog2021 (7) TMI 1183X X X X Extracts X X X X X X X X Extracts X X X X ..... ided in favor of appellant. - SERVICE TAX APPEAL NO. 40534 OF 2018 - Final Order No. 41708/2021 - Dated:- 22-7-2021 - MR. DILIP GUPTA, PRESIDENT AND MR. P.V. SUBBA RAO, MEMBER (TECHNICAL) Ms. Krithika Jaganathan, Advocate for the Appellant Shri Vikas Jhajaria, Authorized Representative of the Department ORDER This appeal seeks the quashing of the order dated 27.11.2017 passed by the Commissioner (Appeals), by which the order dated 20.02.2017 passed by the Additional Commissioner confirming the demand of service tax with interest and penalty has been upheld, and the appeal has been dismissed. 2. M/s Indian Overseas Bank [the appellant] is a Nationalized Bank engaged in providing Banking and Other Financial Services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices alleged to have been rendered to foreign sellers, the appellant as one of the nominated banks authorized by Reserve Bank of India to import and trade in gold has been authorized to grant Gold (Metal) Loans to jewellery manufacturers (domestic manufacturers and exporters) as per Circulars dated 05.09.2005 and 03.04.2007. The appellant imports gold bars/coins from UBS AG and MKS Finance SA Switzerland respectively [foreign sellers] on consignments basis under a Precious Metal Consignment Agreement [PMCA] upon payment of applicable customs duty.The transaction is such that the Precious Metal is procured from foreign suppliers in bar/coin form under an agreement to sell at a future date. The appellant acquires only possessory rights but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d be set aside. 8. Shri Vikas Jhajaria, learned Authorized Representative appearing for the Department has, however, supported impugned order. 9. The Tribunal in Indian Overseas Bank considered both the issues. In regard to the second dispute, the following observations were made: 3. The first issue involved is whether the appellant is providing any safe vault service to Union Bank of Switzerland, Zurich and MKS Finance, Geneva. The appellant imports gold from Union Bank of Switzerland and MKS Finance, Geneva and holds the same with them till such time they find a customer. After the customer is identified and the price of the gold is confirmed, they have their mark up, collect money from customer and send the money to the suppl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service on the appellant. The onus was on Revenue to identify the consideration, if any, received by appellant for providing service. Without any consideration there is no service tax payable. We therefore set aside the impugned orders for demand in all the appeals in respect providing Safe Vault Service and allow the appeals in respect of safe vault services. (emphasis supplied) 10. In regard to the first dispute, the Tribunal observed: 7. The other issue involved in the present appeals is whether service tax is payable on interest received by the appellant. The appellant is providing metal as loan to the customers. Such metal is required to be returned to the appellant by their customers. Further, as consideration for use ..... X X X X Extracts X X X X X X X X Extracts X X X X
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