2009 (4) TMI 776

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....V.V. Hariharan, JCDR, for the Respondent. ORDER We have heard both sides on the application for waiver of predeposit of service tax of Rs. 12,90,10,648/- confirmed against the assessees under the proviso to Section 73(1) together with interest under Section 75 and penalty of Rs. 20 crores under Section 78 of Chapter V of the Finance Act, 1994. Service tax of Rs. 8,16,00,900/- has been confir....

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....nature of compensation for the loss of future interest income. As regards penal charges, they contend that such charges are recovered as fixed charges for dishonour of cheques and as penal interest for delayed payment of EMIs and hence the said charges are required to be excluded under Rule 6(2)(iv) of the above Rules. As regards insurance administration fee recovered from their customers, who opt....

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....tax. Their further submission on non-leviability of service tax on insurance administration fee is that the type of loan disbursed by them is personal loan and housing loan to individual customers and not used in relation to business or commerce and, therefore, demand under the head "Business Auxiliary Service" fails. Lastly, they submit that part of the demand is barred by limitation as they were....

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....ntion to the detailed findings contained in the impugned order, particularly highlighting the finding that assessees themselves were booking foreclosure charges under the category of "processing fee/other charges" and the finding in the impugned order that the insurance administration fee is collected for providing service such as collecting application forms, scrutiny thereof, collecting premium,....