2011 (2) TMI 305

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....DR Per: Archana Wadhwa: The appellants have already deposited an entire amount of service tax and penalty, we dispense with the condition of pre-deposit of interest and proceed to decide the appeal itself with the consent of both the sides. 2. Service tax stands confirmed against the appellants in respect the financial leasing services. Learned advocate fairly agrees that the said service....

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....ng or hire purchase, it is understood that the general business practice is as follows: The service provider enters into a leasing or hire-purchase agreement with the lessee or hire-purchaser. At the time of entering into the agreement, they collect a charge called lease management fee or processing fee or documentation charges or by any other name, which is usually a percentage of the transaction....

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....s rendered but is credited to the capital account of the lessor/hire purchase service provider. The interest/finance charges is the revenue or income and is credited to the revenue account. Such interest or finance charges together with the lease management fee/ processing fee/documentation charges is the consideration for the services rendered and, therefore, they constitute the value of taxable ....