TaxTMI 
TaxTMI 
2013 (11) TMI 1309
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....ed in providing taxable services under the category of 'Banking and other Financial services' as defined under Section 65(12) of the Finance Act, 1994. A demand notice was issued to them for recovery of Service Tax of Rs.11.02 Crores on account of non-payment of Service Tax on the interest on bill discounting and services rendered under the category of renting of immovable property service. Also CENVAT Credit of Rs.5.99 Crores has been disallowed on the input services utilized in the provision of exempted services. 3. Advancing argument on behalf of the Applicant Shri P.K. Saha, Ld. Chartered Accountant has submitted that the Applicant are eligible to the benefit of said Notification No.29/2004-ST dated 22.09.2004 as amended on the quant....
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....time. However, he has fairly accepted that such disclosure has been made only from 2008 in their returns and not earlier. 4. Shri D.K. Acharyya, Ld. Special Counsel for the Revenue has submitted that the Ld. Commissioner has rightly interpreted the plain language of Notification No.29/2004-ST dated 22.09.2004 as amended and came to the conclusion that the amount of interest on over-draft and cash credit facility only be exempted from the value of taxable services, but same is not extended to discounting of bills, bills of exchange and cheques. It is his submission that interest par se cannot be claimed as not coming under the purview of Service Tax. In support he has referred to the Notification No.4/2006 dated 01.03.2006, wherein, exemp....
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.... certain facilities. In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts so much of the value of taxable services provided to a customer, by a banking company or a financial institution including a non-banking financial company, or any other body corporate or commercial concern, in relation to,- (a) overdraft facility; (b) cash credit facility; or (c) discounting of bills, bills of exchange or cheques, as is equivalent to the amount of interest on such overdraft, cash credit or, as the case may be, discount, from the service tax leviable thereon under section 66 of t....
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....sion contained in Rule 6(1) of CENVAT Credit Rules, 2004 which reads as follows:- RULE 6. Obligation of manufacturer of dutiable and exempted goods and provider of taxable and exempted services. -(1) The CENVAT Credit shall not be allowed on such quantity of input or input service which is used in the manufacture of 2[exempted goods or for provision of exempted services,] except in the circumstances mentioned in sub-rule (2). 8. If the Applicant could not able to maintain separate account of the input services that were used in providing taxable services and exempted services, then consequences, are accordingly, mentioned under subsequent sub-rules. We do not find prima facie any apparent error in the computation of CENVAT Credit dema....