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TMI Blog2024 (8) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... ide taxable services under the category of 'Banking and other Financial Services'(BOFS, for short), 'credit/debit card', etc. during the relevant period. On the basis of audit of their records by CERA, it was noticed that the appellant had availed inadmissible cenvat credit to the tune of Rs.52,90,729/- without having proper documents for the input services received i.e. NFS operation issuance fees during the period from April 2009 to March 2012. A show-cause notice dated 19.10.2012 was issued invoking extended period of limitation for recovery of the inadmissible / irregular credit availed on the said input service during the said period without having proper documents, challans, invoices issued by input service provider. On adjudication, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arious details such as name of the service providing bank, registration number, value and service tax amount; but disallowed the credit observing that e-statement was not authenticated by NPCI and accordingly confirmed the demands. It is his contention that the said observation of the learned Commissioner is beyond the scope of the show-cause notice wherein it is alleged that the appellant had availed cenvat credit without an invoice, bill or challan issued by the provider of input service. He has further submitted that the e-statements issued by NPCI are to be treated as invoices issued by the member banks based on the agreements entered into between the member banks for Institute for Development & Research in Banking Technology (IDRBT)/NP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tatements issued by the NPCI are on behalf of the member banks, who are also providing BOFS; therefore the e-statement is a valid document under Rule 4A of Service Tax Rules, 1994. He further submitted that this issue has been considered by CESTAT's Chennai Bench in the case of the Karur Vysya Bank Ltd. Vs. CCE&ST, Trichy [2019(2) TMI 1383 - CESTAT Chennai]. Further the Commissioner of GST&CE, Trichy in the case of Karur Vysya Bank Ltd., vide Order-in-Original No.54 to 57/COMMR/ST/2019 dated 29.08.2009 dropped the proceedings. Similarly, the learned Commissioner of Central Excise & Central Tax, Mangaluru in the case of Corporation Bank on the similar issue dropped the demands against the bank. Further, he has submitted that in the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese transactions between the Member Banks. If a customer having a credit/debit card issued by a bank, transacts with the ATM of that particular bank, or a customer with a particular card transacts with the ATMs installed in other banks, in each of such transactions NPCI assumes the role of facilitating such transactions. 5.2 The appellant being a banking/ banking company, proviso to Rule 4A of the STR,1994, applies, which reads as under:- 4A. Taxable service to be provided or credit to be distributed on invoice, bill or challan - (1) Every person providing taxable service[, not later than [thirty] days from the date of [completion] of such taxable service or receipt of any payment towards the value of such taxable service, whichever is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the same with the accounts of the customers, in the books of the member banks. The said agreement also records that in the event payments are made by one Member bank ATM operated by the appellant to the customers of another bank, then the banks are required to settle such payments made with the member bank who had issued the subject card. In nutshell, the above agreement provides for smooth operation of member banks regarding transaction through credit or debit cards or such other instruments, to the customers who perform transactions through ATMs for specified services. The agreement also provides for the NPCI to raise invoices on member bank and it is that payment made by the appellant for which the NPCI has only issued a e-statement ..... X X X X Extracts X X X X X X X X Extracts X X X X
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