2014 (12) TMI 666

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....Ashok Jindal and P S Pruthi, JJ. For the Appellant : Nihal Kothari, CA with Ms. Prajakta Menezes, CA &  Shri S S Gupta, CA For the Respondent : Shri P M Saleem, Commissioner (AR) JUDGEMENT Per: Ashok Jindal: The applicant namely HDFC Bank Ltd. and ICICI Prudential Life Insurance Co. Ltd. are seeking waiver of pre-deposit of the demands confirmed by way of the impugned order. As....

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....he borrower for certain period of time. Admittedly, if the value of the securities is Rs. 100/-, the lender shall pay certain amount e.g. Rs. 10/- as their charges for lending and remaining Rs. 90/- they lend to the borrower. For that CCIL issue a certificate certifying the amount of security amount lended and the charges. After the maturity period, the borrower will pay the amount written on the ....

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....ng but giving loans and advance against securities. Therefore, prima facie the amount of charges retained by the lender constitute as interest on loan. In these circumstances, the applicants are not required to pay service tax. 6. Another issue for demand of service tax is that the applicant, HDFC Bank Ltd., discounts the account receivable (invoice) of their client and at the time of maturity,....

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....ertain period of time. In the facts of the case, the discount is nothing but interest for lending the money. Therefore, the applicants have made out a case for complete waiver of pre-deposit on this issue. 8. The third demand has been confirmed against HDFC Bank Ltd. for charging penal interest on bills of exchange discounted by them. The revenue is of the view that penal interest recovered by ....