2018 (8) TMI 699

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ma) For the Appellant Mr. Pakshirajan, AR For the Respondent ORDER Per : P. Anjani Kumar M/S. Syndicate Bank (the appellants) is a banking company and a body corporate, conducting their operations in India. It was alleged by the Department that the appellants were acting as the agents for the Reserve Bank of India and were receiving agency commission at the rates notified by RBI, on pe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....06 and was beyond the scope of the Section 73 of the Finance Act, 1994. The Department was fully aware of the facts and the activities of the appellants and therefore, extended period was not invokable as the appellants being undertake intended to evade tax cannot be alleged. The services covered by the SCN cannot be classified as "operation of bank accounts" under the category of "Banking and Oth....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... We find that the Tribunal in the case of Canara Bank cited supra has observed that "it can be seen that RBI have the right to transact Government business and allow any agent to perform its function; from the agreement also, it is quite clear that the Canara Bank have been appointed as an agent. We find that the decision of Hon'ble Supreme Court on this issue in the case of State of Madr....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....was also brought to our notice that RBI is not paying Service Tax. Same functions being carried out by RBI are exempted. Therefore, we hold that the benefit of exemption available to RBI would be available to the agent i.e. Canara Bank. The services are in the nature of statutory/sovereign functions and hence not liable to Service Tax". 6. We find that the issue is squarely covered by the above....