2014 (1) TMI 1372

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....re rendering 'Banking and Other Financial Services' (BOFS, for short). They have collected totally an amount of Rs. 91,74,86,863/- under the category of "out of pocket expenses" including an amount of Rs. 5,56,40,289/- under the category of SWIFT charges during the period April 2005 to March 2010. The Department issued a show cause notice dated 11-10-2010 alleging that these amounts should be treated as part of value of taxable services viz. BOFS and in pursuance of the said show-cause notice, Commissioner has passed the impugned order with consequences as mentioned above. 4.1 The learned Chartered Accountant, appearing for the appellant, submits that these collections were not related to the BOFS like opening of letter of credit (LC)....

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....eriod of limitation is not justified. He also fairly submits that within the normal period of limitation, the service tax amount is Rs. 1.9 crores. 4.4 The learned Chartered Accountant, in support of his submission, relies on the decision of the Tribunal in the case of Pudukottai District Central Co-Operative Bank Ltd. v. CCE, Trichy [2008-TIOL-1693-CESTAT-MAD = 2008 (12) S.T.R. 376 (T)]. 5. The Commissioner(AR) submits that the service relating to issue of LC cannot be treated as completed till the LC reaches the concerned persons. Similarly in respect of the other activities of the bank for which the so-called out of pocket expenses and the SWIFT charges were collected, the services were not completed until the communication ....