Corporate insolvency resolution process amended with expanded disclosure, guarantor asset transfer rules, and new dissolution and restoration procedur...
Conflicting coordinate Bench decisions on whether bank commitment charges for keeping sanctioned loan funds available are exigible to service tax required a Larger Bench reference. One view treated the charges as consideration for the bank's contractual commitment to lend, with a clear quid pro quo and no character as interest; the other view, invoking judicial discipline, found that earlier coordinate decisions could not be ignored and that the matter should be placed before the President for constitution of a Larger Bench. The substantive taxability question, along with the precedential effect of the appellant's earlier case, was left open for authoritative determination.
Conflicting coordinate Bench decisions on whether bank commitment charges for keeping sanctioned loan funds available are exigible to service tax required a Larger Bench reference. One view treated the charges as consideration for the bank's contractual commitment to lend, with a clear quid pro quo and no character as interest; the other view, invoking judicial discipline, found that earlier coordinate decisions could not be ignored and that the matter should be placed before the President for constitution of a Larger Bench. The substantive taxability question, along with the precedential effect of the appellant's earlier case, was left open for authoritative determination.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4805
Join Channel
TaxTMI 
