2018 (6) TMI 584

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.... the ambit of ‚Banking and Other Finance Services‛ (BOFS) in terms of Section 65 (12) of the Finance Act, 1994. Accordingly, a show cause notice dt. 22.04.2010 was issued proposing demand of service tax amounting to Rs. 1,73,34,098/- with interest thereon for the period October 2004 to March 2009. The notice also proposed imposition of penalties under various provisions of law. In adjudication, the Commissioner vide impugned order dt. 24.09.2010 confirmed the tax demand along with interest as proposed in the SCN and imposed penalties under Section 77 & 78 of the Act. Hence this appeal. 2.1 Today, when the matter came up for hearing, on behalf of the appellant, Ld.Consultant Shri M. Saravanan and Ld. Counsel Shri J. Shankarram....

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....within the fold of a bank or a financial institution. By implication, the services provided by the appellant will not fall within the ambit of 'Banking and Other Financial Services' for the purpose of Section 65 (12) of the Act. 2.3 It is also submitted that the proceedings are themselves are hit by limitation since appellants were under bonafide belief and understanding that no service tax is payable by them for the micro lending service carried out by them and also taking into account the fact that no service tax is collected by them either, and that for being public charitable trust, they are exempt from all taxes. 2.4 Ld. Counsels also rely upon the following cases : (a) Chiplun Nagari Sahakari Patsanstha Ltd. Vs CCE Kolhapur -....

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..... Advocate, for considerable part of the period of dispute the services rendered by the appellant would be within the scope of services rendered by "any other person", hence the same would be taxable. 4. Heard both sides and have gone through the facts. 5. There is no dispute, even in the SCN that appellants are a Registered Charitable Trust with registration No.1133/4.4.1997 as a Federation of Women in micro credit. There is also no allegation that they have been approved to function as a bank or even as a non-banking institution by the R.B.I. This being so, they cannot be termed as a "Banking Company" or "Financial Institution". Counsels have also been able to show that as per the RBI Act a 'financial institution' is a 'non-banking ....