Banking and other financial services classification led to waiver of pre-deposit and stay of recovery pending appeal.

For interim relief, the Tribunal considered whether a lease-equipment arrangement with instalments collected as lease rentals could prima facie fall within "banking and other financial services" under the Finance Act, 1994. The appellant invoked ejusdem generis to argue that "any other body corporate" covers only entities engaged in financial activities akin to a financial institution, while the Revenue relied on the agreement's recitals and option-to-purchase clause to characterise the transaction as a financial service. Relying on earlier stay orders taking a similar prima facie view, the Tribunal granted waiver of pre-deposit and stayed recovery of the service tax and penalty pending disposal of the appeal.

---

---

Issues: Whether, for the purpose of interim relief, the appellant could be said to be covered by the expression "banking and other financial services" under Section 65 of the Finance Act, 1994, and whether recovery of the service tax and penalty demand should be stayed pending disposal of the appeal.

Analysis: The demand arose from an agreement described as a lease of equipment, under which instalments were collected as lease rentals. The appellant relied on the principle of ejusdem generis to contend that a company would fall within the expression "any other body corporate" only if it were engaged in financial activities akin to a financial institution. The Revenue relied on the terms of the agreement, including its recitals and option-to-purchase clause, to contend that the transaction was in substance a financial service. For the limited purpose of interim relief, the Tribunal noted earlier stay orders taking a similar prima facie view on the scope of the definition.

Outcome: Waiver of pre-deposit and stay of recovery were granted in respect of the service tax and penalty amounts pending final disposal of the appeal.

---