2018 (6) TMI 1143

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....illets, rolled items and other goods falling under Chapter 72, 73 etc. The dispute covers the period 2011-12 to 2014-15 (upto August, 2015). The appellant availed cenvat credit on inputs, capital goods and input services. In addition, to manufacture and clearance of excisable goods, the appellant avail loans from various Banks as well as other 'Banking and other Financial Services' from overseas service provider. For such services, they paid service tax under reverse charge mechanism and part of such service tax was allocated to the appellant unit by their corporate office under the registration as input service provider. The departmental officers during the course of audit observed that the appellant did not maintain separate record of inp....

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....cture of goods and not banking operations. (iii) He elaborately took us through the definitions in the Reserve Bank of India Act to press the above point. (iv) It is settled principle of law that taxing statute are to be interpreted literally. The adjudicating authority has recorded in the impugned order that the reversal @ 50% is applicable to the appellant, even though they do not fall in any of the categories, since they have undertaken the activities carried out by the above institutions. Finally, he submitted that the impugned order may be set aside. 5. Learned AR justified the impugned order. He submitted that the restriction of cenvat credit to 50% is to be made applicable to the appellant inasmuch as the activit....

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....ry month an amount equal to fifty per cent of the CENVAT credit availed on inputs and input services in that month". From a reference to the above provisions it is clear that the above non obstante clause that the above sub rule is applicable only to a Banking Company and a Financial Institution including a 'Non Banking Financial Company'. The claim of the appellant is that, even though they have provided the services which are covered within the definition of 'Banking and other Financial Services', the provisions of Rule 6(3B) will not be applicable to them since they do not fall within any of the categories specified in the above rule. To evaluate the claim of the appellant it is necessary to consider the definition of the above terms.....

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....iness as such manufacturer or trader shall not be deemed to transact the business of banking within the meaning of this clause". Further, the word 'Banking' which is defined in Section 5(b) of Banking Regulation Act, 1949 reads as- "Banking means accepting deposits for the purpose of lending or investment of deposits of money from the public repayable on demand or otherwise and withdraw able by cheque, draft order or otherwise". It is, thus, evident that company, which accepts deposits from public for the purpose of lending or investment, will be considered as banking company. 5. In view of the Explanation to Section 5(c) of the Banking Regulation Act, 1949, the appellant will not fall within the category of 'Banking....

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....o a hirer under a hire- purchase agreement as defined in clause (c) of Section 2 of the Hire Purchase Act, 1972 (26 of 1972). (iv) The carrying on of any class of insurance business; (v) Managing conducting or supervising as foreman agent or in any other capacity of chits or juris as defined in any law which is for the time being in force in any state or any business which is similar there to; (vi) Collecting for any purpose or under any scheme or arrangement by whatever name called monies lump-sum or otherwise by way of subscriptions or by sale of units or other instruments or in any other manner and awarding prizes or gifts whether in cash or kind or disbursing monies in any other way to person from whom monies ....