2007 (11) TMI 372

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....(JDR), for the Respondent JUDGEMENT Per T.K. Jayaraman This appeal has been filed against Order in Revision No. 1/2006 dated 26.10.2006/16.11.2006 passed by the Commissioner of Central Excise, Mangalore. 2. The appellant M/s. Praveen Autofin Pvt. Ltd. was alleged to have provided "Banking and other Financial Services" during the period from 16.7.2001 to 31.12.2003 without payment of Se....

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....med a demand of Rs. 3,37,771/- for the period from 16.7.2001 to 31.12.2003. He demanded interest under Section 75 of the Act. He imposed penalty of Rs. 500/- under provisions of Section 75 A of the Finance Act 1994 for failure to make application of registration under section 69 of the Act. He imposed a penalty of Rs. 100/- in terms of Section 76. Further he imposed penalty equal to the Service ta....

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....ellants take a promissory note from each of the borrower and also they obtained signatures of the borrowers from blank lease agreement forms. In view of the agreement Revenue thought that the appellant is engaged in the category of "Hire purchase Services". Therefore proceedings were initiated. However, the original authority after going through the documents and also the "Hire purchase Act" came ....

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....en that the Mumbai Bench "Hire purchase Scheme", it is clearly seen that the Mumbai Bench of the CESTAT in the case of Bajaj Auto Finance-2007 (7) STR 423 (Tri:-Mumbai) has clearly drawn a distinction between Hire purchase Service which is Taxable and Hire purchase Finance Service which is not a taxable service. In any case, it is very clear that the appellants have not rendered the services of Hi....