https://www.taxtmi.com/caselaws?id=207415 CESTAT, Ahmedabad held that prepayment charges and charges for resetting interest rates levied by the appellant, a lender, are taxable under "Banking and Other Financial Services" as activities "in relation to lending" post 10.09.2004. The Tribunal distinguished such charges from interest, finding they are consideration for services such as processing the borrower's request for foreclosure or reset and managing asset-liability mismatch. Consequently, service tax liability on both prepayment and reset charges was upheld. Further, invocation of the extended period of limitation was sustained on the ground of suppression, as the appellant failed to disclose such income, file ST-3 returns, or seek clarification despite the statutory amendment. en-us Fri, 25 Nov 2011 00:00:00 +0530 Wed, 03 Dec 2025 12:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=207415 CESTAT, Ahmedabad held that prepayment charges and charges for resetting interest rates levied by the appellant, a lender, are taxable under "Banking and Other Financial Services" as activities "in relation to lending" post 10.09.2004. The Tribunal distinguished such charges from interest, finding they are consideration for services such as processing the borrower's request for foreclosure or reset and managing asset-liability mismatch. Consequently, service tax liability on both prepayment and reset charges was upheld. Further, invocation of the extended period of limitation was sustained on the ground of suppression, as the appellant failed to disclose such income, file ST-3 returns, or seek clarification despite the statutory amendment. Case-Laws Service Tax Fri, 25 Nov 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=207415