2013 (8) TMI 452

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....der section 65 (105) (zm) read with section 65 (12) (a) (ix) of Finance Act, 1994 and initiated proceedings for tax not paid. 2. Further, during 2008-09 the applicant had made payment to Vedanta Resources Plc. Inc. London for securing external commercial loans and paid commission to Vedanta Resources Plc. Inc. London. Revenue was of the view that the applicant should have paid tax on this service received as per the provisions of section 66A of the Finance Act, 1994. Since no tax was paid on this account, the Show cause Notice demanded tax on this count also and was adjudicated. The total amount of demand confirmed against the applicant is Rs.16,34,84,700/- along with interest and penalties. 3. Aggrieved by the order of the adjudicati....

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....ervices; (vi) advisory and other auxiliary financial services including investment and portfolio research and advice, advice on mergers and acquisitions and advice on corporate restructuring and strategy; (vii) provision and transfer of information and data processing; (viii) banker to an issue services; and (ix) other financial services, namely, lending; issue of pay order, demand draft, cheque, letter of credit and bill of exchange; transfer of money including telegraphic transfer, mail transfer and electronic transfer, providing bank guarantee, overdraft facility, bill discounting facility, safe deposit locker, safe vaults; operation of bank accounts; 5. It is pointed out that Revenue is trying to bring the activity in cl....

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....t the corporate guarantee is similar in nature to bank guarantee. The service cannot escape the tax net for the reason that the guarantee is given by a corporate entity other than a Banking company or NBFC. Further, he submits that in respect of banking and financial services, the liability for services received from outside India is to be judged with reference to place of residence of the recipient of service and not the place of performance of service. 8. We have considered argument on both sides. What we find is that clause 12 (a) of section 65 (105) as also sub-clause (ix) of section 65 (12) (a) specifies services using the expression 'services namely'. Such language gives very little scope for an expansive construction of the items ....