https://www.taxtmi.com/caselaws?id=449467 CESTAT Kolkata held that financing agreements where customers purchase assets in their name and seek financing from the appellant constitute hire purchase finance agreements, not hire purchase agreements subject to service tax. The tribunal found that ownership vests solely with customers without any option to purchase at installment completion, making these loan transactions rather than taxable services. Relying on SC precedent in Sundaram Finance Ltd. and CESTAT Mumbai decision in Bajaj Auto Finance Ltd., the tribunal distinguished between hire purchase agreements and hire purchase finance agreements, ruling the latter falls outside service tax ambit. The demands for service tax, interest, and penalty were set aside, and the appeal was allowed. en-us Thu, 08 Feb 2024 00:00:00 +0530 Tue, 13 Feb 2024 07:43:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449467 CESTAT Kolkata held that financing agreements where customers purchase assets in their name and seek financing from the appellant constitute hire purchase finance agreements, not hire purchase agreements subject to service tax. The tribunal found that ownership vests solely with customers without any option to purchase at installment completion, making these loan transactions rather than taxable services. Relying on SC precedent in Sundaram Finance Ltd. and CESTAT Mumbai decision in Bajaj Auto Finance Ltd., the tribunal distinguished between hire purchase agreements and hire purchase finance agreements, ruling the latter falls outside service tax ambit. The demands for service tax, interest, and penalty were set aside, and the appeal was allowed. Case-Laws Service Tax Thu, 08 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449467