https://www.taxtmi.com/caselaws?id=434381 The Tribunal held that foreclosure charges collected by banks and non-banking financial companies are not subject to service tax under the definition of "banking and other financial services." Citing a Larger Bench decision, it determined that such charges, distinct from interest, do not fall within the scope of service tax but are akin to damages for premature loan closure. Consequently, the demand for service tax, interest, and penalties was set aside, providing relief to the appellant and affirming the distinction between foreclosure charges and interest in the banking and financial services context. en-us Wed, 22 Feb 2023 00:00:00 +0530 Thu, 23 Feb 2023 08:51:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=434381 The Tribunal held that foreclosure charges collected by banks and non-banking financial companies are not subject to service tax under the definition of "banking and other financial services." Citing a Larger Bench decision, it determined that such charges, distinct from interest, do not fall within the scope of service tax but are akin to damages for premature loan closure. Consequently, the demand for service tax, interest, and penalties was set aside, providing relief to the appellant and affirming the distinction between foreclosure charges and interest in the banking and financial services context. Case-Laws Service Tax Wed, 22 Feb 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=434381