TaxTMI 
TaxTMI 
2019 (4) TMI 813
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....8,92,597/- and also an amount of Rs. 7,38,64,684/- on the interest earned from the cash credit and over draft and also an amount of Rs. 8,82,30,460/- as an interest earned on demand loan and term loan both being the irregular amounts as not shown separately on an invoice, a bill or as the case may be, the challan issued for this purpose. Resultantly, for the period 2006-07 to 2008-09 show cause notice dated 24.08.2011 was served upon the appellant proposing the recovery of the service tax on the said amounts alongwith the interest at appropriate rate and the proportionate penalties. The said show cause notice was adjudicated by Commissioner vide its order No.070 dated 31.05.2016. The Commissioner has dropped the entire demand pertaining to ....
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.... 659 (Tri.) 3. CCE, Lucknow vs. Krishna C & F Agency reported in 2018 (14) G.S.T.L. 251 (Tri. All.) 4. CCE, Bangalore vs. Motor World reported in 2012 (27) STR 225 (Kar.) 5. Ld. D.R., per-contra, has justified the order submitting that due consideration for all grounds of defence have been given by the Commissioner. The demand of Service Tax qua commitment charges has been confirmed as the same was found to be included in the taxable value drawn up for the aforesaid relevant statutory ST-3 returns for 2006-07 and 2007-08. It stands paid for 2006-07 but not for 2008-09, which is why the demand has been rightly confirmed. Appeal is accordingly, prayed to be dismissed. 6. After hearing both the parties, we are of the opinion that t....
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....spect of any moneys borrowed or debt incurred (including a deposit, claim or other similar right or obligation) and includes any service fee or other charge in respect of the moneys borrowed or debt incurred or in respect of any credit facility which has not been utilized." 8.2. The Central Board of Direct Taxes vide Para 12.1 of Circular No. 202 dated 5-7-1976 in the context of Section 2(28A) of the Income-tax Act, 1961 has clarified as under : "The term interest has been defined in new clause (28A) inserted, in Section 2 of the Income-tax Act with a view to removing doubts about the true character of fees or other charges paid in respect of monies borrowed or in respect of credit facilities which have not been utilized. The definiti....
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.... definition as in the case of a service fee paid in respect of a credit facility which has not been utilised. Even in cases where there is no relationship of debtor and credit or borrower and lender, if payment is made in any manner in respect of any moneys received as deposits or on money claims or rights or obligations incurred in relation to money, such payment is, by this statutory definition, regarded as interest." 8.4 The Department's SLP against the decision of the Madras High Court has been dismissed by the Supreme Court in 264 ITR (Statute) 144. The appellant has also drawn attention to the pronouncement of the Supreme Court in the case of Titaghur Paper Mills Company Limited v. State of Orissa, (1983) 142 ITR 663 where in it is....