Independent show-cause notices remain separate proceedings, while customs adjudication challenges should ordinarily follow the statutory appellate rem...
Institutional incapacity in customs settlement proceedings excludes non-functional quorum periods from statutory disposal timelines, preventing automa...
Interactive touchscreen panels with integrated computing functions fall under automatic data-processing machines rather than display monitors for cust...
Ex parte injunction service requirements were substantially met, while civil recovery and SFIO investigation into provident fund defalcation continued...
Enforcement of resolution-plan directions continues without a Supreme Court stay, preventing suspension of redistribution and escrowed-fund distributi...
Third-party ownership claims over attached property require Special Court adjudication where purchasers lack registered sale deeds and bona fides rema...
Pure-agent reimbursements in clearing and forwarding services are excluded from taxable value when qualifying third-party payments are properly record...
The Supreme Court held that the acquiring bank should pay service tax on the entire Merchant Discount Rate (MDR), which includes the interchange fee payable to the issuing bank, rather than separately taxing the interchange fee received by the issuing bank. The use of the conjunction 'and' in the relevant provision indicates the legislative intent to tax the MDR as a whole, without bifurcating it. Taxing the MDR at the first point of collection by the acquiring bank facilitates ease of tax collection and avoids revenue loss. The Revenue Department had all relevant data and could have ascertained the position before issuing show cause notices demanding separate taxation of the interchange fee. As the service tax on the entire MDR has already been paid, no separate tax is payable on the interchange fee component.
The Supreme Court held that the acquiring bank should pay service tax on the entire Merchant Discount Rate (MDR), which includes the interchange fee payable to the issuing bank, rather than separately taxing the interchange fee received by the issuing bank. The use of the conjunction 'and' in the relevant provision indicates the legislative intent to tax the MDR as a whole, without bifurcating it. Taxing the MDR at the first point of collection by the acquiring bank facilitates ease of tax collection and avoids revenue loss. The Revenue Department had all relevant data and could have ascertained the position before issuing show cause notices demanding separate taxation of the interchange fee. As the service tax on the entire MDR has already been paid, no separate tax is payable on the interchange fee component.
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