2013 (11) TMI 299

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....nder Revision of OIO dt. 28/06/2006 passed by Assistant Commissioner, Valsad where penalty under Sec. 76 of the Finance Act 1994 was not imposed. The issue involved is whether or not interest-charges on EMI (Equated Monthly Installment), collected as 'Documentation and Service Charges' at the time of entering into hire purchase agreements, is chargeable under Banking and other financial services and what service tax rate will be applicable when the services are contracted in the period when rate was lower, but enhances in the entire period of EMI's. 2. Sh. Jigar Shah (Advocate) appearing on behalf of the appellant argued that appellant is not providing any Banking and Financial Services which also stands exempted under Notification No. 2....

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....on which the original adjudicating authority and the first appellate authority decided the case against the appellant:- (i) Whether the interest contained in the EMIs paid which include the interest earned on advances will be a consideration by service provider while extending Banking and other Financial Service by the appellant. (ii) Whether the rate of service tax leviable as per Sec. 66 of the Finance Act 1994 varied from 5% to 8% under Finance Act, 2003 w.e.f. 14/05/2003 and from 8% to 100% +2% ST under Finance Act, 2004 w.e.f. 10/09/2004, should be the higher rate by subsequent Finance Acts or the rate prevailing at the time of extending into contract for the services. 4.1 So far as charging of interest on loans/advances is c....