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TMI Blog2023 (5) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... nance or repair services, erection commissioning and installation service, business auxiliary service, renting of immovable property service. The Department while verifying their records for the period 2010-11 to 2014-15 observed that the appellant has given corporate guarantee on behalf of their associate enterprises M/s. Scintrex Geo Physical Services (India) Pvt. Ltd. and M/s. HGS India Ltd., to Syndicate Bank, Vasant Vihar. The said activity of the appellant was alleged amounting to provide the Banking and other Financial Services and a show cause notice No.3/2016-17 dated 13.04.2016 was served upon the appellant proposing the demand of Service Tax alongwith interest and the proportionate penalty for providing said service. The said pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... F Cyber City Developers Ltd. vs. Commissioner of S.T., Delhi - IV [2019 (28) G.S.T.L. 478 (Tri.-Chan)] 3. Sterlite Industries India Ltd. vs. Commissioner of GST & C.Ex., Tirunelveli [2019 925) G.S.T.L. 277 (Tri-Chennai)] 4. As far as the meaning of consideration is concerned it is mentioned that the same has wrongly been interpreted by the adjudicating authorities, ld. Counsel has relied upon the case law in the case of Bhayana Builders v. CST, Delhi - 2013(32) STR 49 (Tri-LB). The order under challenge is accordingly, prayed to be set aside and appeal is prayed to be allowed. 5. Ld. D.R., while submitting, has fairly conceded that the issue involved herein is no more res-integra. However, has impressed upon the findings in the order un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale of foreign currency, including money changing; (v) asset management including portfolio management, all forms of fund management, pension fund management, custodial, depository and trust services; (vi) advisory and other auxiliary financial services including investment and portfolio research and advice, advice on mergers and acquisitions and advice on corporate restructuring and strategy; (vii) provision and transfer of information and data processing; and (viii) banker to an issue services; and (ix) other financial services, namely, lending, issue of pay order, demand draft, cheque, letter of credit and bill of exchange, transfer of money including telegraphic transfer, mail transfer and electronic transfer, providing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iii) any amount retained by the lottery distributor or selling agent from gross sale amount of lottery ticket in addition to the fee or commission, if any, or, as the case may be, the discount received, that is to say, the difference in the face value of lottery ticket and the price at which the distributor or selling agent gets such ticket.] [(b) *********] (c) "gross amount charged" includes payment by cheque, credit card, deduction from account and any form of payment by issue of credit notes or debit notes and [book adjustment, and any amount credited or debited, as the case may be, to any account, whether called "Suspense account" or by any other name, in the books of account of a person liable to pay Service Tax, where the tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion'... Now the definition of service in Section 65 B (44) of Finance Act, 1944 becomes relevant. It reads as follows:- Service means 'any activity carried out by a person for another for consideration and includes declared service but not includes the services listed in the negative list under section 66B of the Act'. 9. Reverting to the facts of the present case, we observe that the Show Cause Notice itself recites that the appellant has given the corporate guarantee on behalf of their group companies but has not charged any commission or interest or fees for providing the said corporate guarantee. Same is also apparent from the letter given by the Syndicate Bank from where was issued the impugned corporate guarantee that the loanee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and intends to define what constitutes the value received by the service provider as "consideration" from the service recipient for the service provided. Implicit in this legislative architecture is the concept that any consideration whether monetary or otherwise should have flown or should flow from the service recipient to the service provider and should accrue to the benefit of the later. "Free supplies", incorporated into construction (cement or steel for instance), even on an extravagant inference, would not constitute a non-monetary consideration remitted by the service recipient to the service provider for providing a service, particularly since no part of the goods and materials so supplied accrues to or is retained by the servic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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