2016 (11) TMI 61

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n received by the Banks on credit card transactions. 2. Revenue has challenged the orders before us. The brief facts are given below: (i) Respondent-Banks are engaged in providing taxable service under the category of Banking and Other Financial Services as defined in Section 65(12) of the Finance Act, 1994. The respondents inter alia provide credit card services to its customers/clients for which purpose they enter into an agreement with Merchant Establishments like shops, restaurants, malls, etc. As per the terms of the agreement, the merchant establishment undertakes to sell goods or provide services to the holders of the credit cards issued by the assesse or any holders. The merchant establishment generates the bill of the c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... card/other payment card service was given the status of separate category of taxable service with effect from 1.5.2006 by the Finance Act, 2006 and the discount/commission was included in the value of taxable services. The Commissioner relied upon Board s Circular F. No.B11/1/2001 TRU dated 9.7.2001 and dropped further proceedings initiated in the show cause notice holding that the discount/commission received from merchant establishment/banks do not constitute value of taxable service for the purpose of charging service tax prior to 1.5.2006. 2. We have heard Shri J. Harish, learned AR for the Revenue and Smt. Lalitha Rameswaran, CA for the respondent-Banks. 3. The learned CA appearing for the respondent-Banks submitted that the cre....