2016 (11) TMI 22

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....g which a demand of Rs. 65,67,524/- stands made in the impugned order as service tax payable under the category of Business Auxiliary Service (BAS) under Section 65(19) of the Finance Act, 1994. The interest payable under Section 75 as well as penalties have been imposed. The Revenue took the view that the activities of cash management referred by the appellant-Bank would be leviable for service tax under the BAS as above. The impugned order has been challenged on the following grounds. (i) Banking and Other Financial Services (BOFS) was introduced in the statute w.e.f. 16.7.2001 under Section 65(12), however, the definition of the services from that date did not include cash management services. Cash management services were specifically ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... or a financial institution including a non-banking financial company or any other body corporate, namely:- (i) Financial leasing services including equipment leasing and hire-purchase by a body corporate; (ii) Credit card services; (iii) Merchant banking services; (iv) Securities and foreign exchange (forex) broking; (v) Asset management including portfolio management, all forms of fund management, pension fund management, custodial depository and trust services, but does not include cash management; (vi) Advisory and other auxiliary financial services including investment and portfolio research and advice, advice on mergers and acquisitions and advice on corporate restructuring and strategy; (vii) Provision and transfer of i....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... High Court has given detailed consideration to Clause (19) of Section 65 which defines business auxiliary service . It has thereafter held that sub-clause (vii) of Clause (19) refers to only a service which is incidental or auxiliary to any activity specified in sub-clauses (i) to (vi), but those activities in turn do not specifically relate to banking and other financial services. Rather such banking and other financial services are specifically covered by clause (12) of Section 65. 11. In that view of the matter, the High Court held that Clause (12) of Section 65 covers all charging services rendered by the Banks. The High Court is further of the view that when cash management services stood excluded from the purview of service tax at ....