https://www.taxtmi.com/caselaws?id=773615 CESTAT Mumbai held that foreclosure charges collected by appellants on premature loan termination and seizure charges for vehicle release after loan default do not constitute taxable services under Banking and Financial Services category. Following SC precedent in Bhayana Builders and Larger Bench decision in Repco Home Finance, the tribunal ruled these charges are penalties for non-performance rather than consideration for taxable services. The adjudicating authority's order imposing service tax liability on such charges was set aside and appeal allowed. en-us Thu, 19 Jun 2025 00:00:00 +0530 Thu, 26 Jun 2025 08:35:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=773615 CESTAT Mumbai held that foreclosure charges collected by appellants on premature loan termination and seizure charges for vehicle release after loan default do not constitute taxable services under Banking and Financial Services category. Following SC precedent in Bhayana Builders and Larger Bench decision in Repco Home Finance, the tribunal ruled these charges are penalties for non-performance rather than consideration for taxable services. The adjudicating authority's order imposing service tax liability on such charges was set aside and appeal allowed. Case-Laws Service Tax Thu, 19 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=773615