2014 (6) TMI 98

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of a show cause notice dated 21.10.2011 covering the period April 2006 to March 2008, alleging under remittance of service tax consequent on under-disclosure of the total consideration received for providing the taxable 'banking and other financial' services defined in Section 65(12) read with Section 65(105)(zm) of the Finance Act, 1994. 2. Suffice to notice that the total levy comprises service tax allegedly remitable on consideration received towards check bouncing charges, amounting to Rs. 21,95,743/-; on foreclosure charges, amounting to Rs.31,29,028/-; on the consideration received towards operating lease/ hire purchase transactions, amounting to Rs.35,47,359/-; and interest on alleged unauthorised utilisation of cenvat credit. Inter....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... taxable services; that this principle would also be applicable to other service providers; and similarly detention charges collected for delayed return of containers provided by shipping companies and agents would not amount to consideration received for providing the taxable BAS or BSS, as these are in the nature of penal rent and not for rendition of taxable services. Two decisions of this Tribunal in Small Industries & Development Bank of India vs. CCE, Chandigarh - 2011 (23) STR 392 (Tri. Del.) and in Housing & Dev. Corporation Ltd. vs. CST, Ahmedabad - 2012 (26) STR 531 (Tri. Ahmd.) have recorded conflicting views and conclusions on the issue whether foreclosure charges fall within the ambit of 'banking and financial' services. The ea....