TaxTMI 
TaxTMI 
2017 (11) TMI 1400
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....er the category of non-banking and other financial services. According to the department, the appellants were providing other financial services like deposit processing services, insurance policy processing services, accounting services, employee administration services, ATM card embossing services and power plus cards for purchase of fuel. The appellant was collecting service charges for all the above services but were not paying service tax. On being pointed out, the appellants paid the service tax under protest. Later, they filed refund claims for the different periods contending that the activities would not fall under the category of Banking and other financial services and therefore not subject to levy of service tax. Show cause notic....
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.... 65(11) and argued that the activities of processing deposits, insurance policy, accounting services etc. would not come under the definition of banking and other financial services. He explained the activities carried out by the appellant in the above to be as under:- a) "Deposit Processing Service: Sundaram Business Services (SBS) is a division of Sundaram Finance Limited (SFL). SBS under takes the "Back Office" administration work relating to acceptance and management of Fixed Deposits and Cumulative Deposits. The natures of service undertaken are Generation of Cheque acceptance receipts, Banking the Cheques and monitoring realisation, issue of FDRs and CDRs, issuing interest warrants, ECS Statements, renewal notices....
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.... analysis. d) Power plus cards for purchase of fuel During the period SFL has issued and managed a petro card known as "Power Plus" meant exclusively for the fleet owners, in association with Oil Companies. The card is unique in nature and can be used to buy lubricants and fuel for a specific vehicle anywhere in India from specified outlets of the Oil Company. However it is and not meant for general use like other fuel cards. The membership fee and in case of credit based cards the service charges were collected by SFL from the Fleet owners." 4. The Id. Counsel submitted that the adjudicating authority has held that the employee administration service and ATM card embossing services would fall under Bu....
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.... purchase of fuel, in our view, being issuance of credit card or lending would fall within the ambit of banking and other financial services. On these activities, the appellants are liable to pay service tax. We, therefore, hold that the demand of service tax on activities like deposit processing services, insurance policy processing services and accounting services would not fall within thé definition of banking and other financial services and therefore demand on these services are liable to be set aside. The impugned order is modified to extent of setting aside the demand on the above three services i.e. deposit processing services, insurance policy processing services and accounting services, without disturbing the confirmation o....