https://www.taxtmi.com/caselaws?id=2309 The Tribunal ruled in favor of the appellants, setting aside the service tax demand, interest charges, and penalties imposed by the lower authorities. The Tribunal found that the leasing and hire purchase activities of the appellants did not fall under the taxable service category of "Banking and other Financial Services" as they primarily dealt with their own manufactured goods and were not professional lessors. The inclusion of interest in the taxable service value was deemed unsustainable as interest did not constitute consideration for a service, in line with the Finance Act's exclusion of interest on loans from taxable service value. Additionally, the payment of sales tax on the leased equipment exempted the appellants from service tax liability. en-us Tue, 11 Sep 2007 00:00:00 +0530 Wed, 19 Mar 2014 15:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=2309 The Tribunal ruled in favor of the appellants, setting aside the service tax demand, interest charges, and penalties imposed by the lower authorities. The Tribunal found that the leasing and hire purchase activities of the appellants did not fall under the taxable service category of "Banking and other Financial Services" as they primarily dealt with their own manufactured goods and were not professional lessors. The inclusion of interest in the taxable service value was deemed unsustainable as interest did not constitute consideration for a service, in line with the Finance Act's exclusion of interest on loans from taxable service value. Additionally, the payment of sales tax on the leased equipment exempted the appellants from service tax liability. Case-Laws Service Tax Tue, 11 Sep 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=2309