2009 (12) TMI 315

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....viding services of mechanized processing of cheques, drafts, pay orders, at-part instruments etc., to their various customers like banks, financial institution etc. at various places in the country using MICR technology. It was concluded that the said services fall under the scope of Banking and other Financial Services and attracted levy of service tax. Coming to such a conclusion a show cause notice dated 29 August, 2006 was issued for the period 16-7-2001 to 31-3-2005 demanding service tax to the tune of Rs. 2,73,51,424.45. It was also alleged that the appellant had failed to obtain registration in terms of the provisions of Section 69 of the Finance Act. The show cause notice was adjudicated by the adjudicating authority who vide his or....

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....ave considered the submissions made at length by both sides and perused the records. The issue involved in this case is whether activity of providing the services of mechanized processing of cheques, drafts, pay orders at-par instruments etc., by using MICR technology would be covered under the category of Banking and other Financial Services or otherwise. We find from the records that the appellant had deposited the entire amount of service tax and the interest leviable. Before the issuance of show cause notice. We also note that the appellant has at the outset clarified that they are not contesting the demand of service tax and interest but they seek to set aside the penalties imposed. We find that in an identical issue in respect of Punj....