TaxTMI 
TaxTMI 
2018 (8) TMI 900
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....nts for the Reserve Bank of India and were receiving agency commission at the rates notified by RBI, on per transaction basis, in respect of receipts or payments made, on behalf of the Government of India. It was alleged that the services provided by the appellant to the RBI amounted to providing a taxable service under the Banking and other Financial Services which was taxable from 10.09.2004. The Department issued four show-cause notices to the appellants, which were confirmed vide Order-in-Original No.ST/59/2009-Commr.LTU dated 30.6.2009; Order-in-Original No.92/2010-CE (Commr.) dated 30.11.2010; Order-in-Original No.67/2011-ST (Commr.) dated 19.7.2011; Order-in-Appeal No.74/2011-ST (Commr.) dated 4.8.2011; and Order-in-Original No.3/201....
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.... comes within the parameters of the exemption clause or exemption Notification. 4. Heard both sides and perused the records of the case. 5. We find that the Tribunal in the case of Canara Bank cited supra has observed that in para 12 as under: "12. From the above it can be seen that RBI have the right to transact Government business and allow an agent to perform its function. From the Agreement also it is quite clear that Canara Bank have been appointed as an agent. We find ourselves in agreement with the submissions made by ld. Chartered Accountant that the decision of Hon'ble Supreme Court on this issue would be applicable to the facts and circumstances of the case. The decision was rendered on this issue in the case of Sta....
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....ncipal. Therefore, while functioning within the scope of the agency he can exercise all the rights which his principal could have exercised. In fact, in the case of an ordinary agency, the agent merely acts for his principal. This provision must hold good even under the Madras General Sales Tax Act unless otherwise provided therein. The fact that for the purpose of that Act an agent is considered as a dealer does not alter the legal position in other respects. Excepting to the extent otherwise provided in the Madras General Sales Tax Act the agent must be held to represent his principal while dealing with the goods of his principal; he merely steps into the shoes of his principal. He is entitled to the same exemptions as his principal would....
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....No. 22/2006-S.T., needs to be extended to respondent. In our view the claim of the respondent from exemption of the service tax on the commission received for undertaking the activity of receiving various taxes on behalf of the Govt. of India, seems to be justified inasmuch as that the provisions of Section 45 of RBI Act categorically mandated for appointing national bank or a State Bank by the RBI for specified purposes as directed by Government; and the said Section also mandates that such Banks will be agents of RBI. 7.6 It can be seen from the above reproduced definition, the Finance Act itself acknowledges the fact that the person who is liable to pay service tax includes its agent which would mean in the case in hand that in ....