2020 (3) TMI 751

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....so the same. Therefore all the appeals are being taken together for decision and this common order is being passed. 2. Brief facts of the case are that the appellant is a banking company and is involved in sale and purchase of gold. There are two issues in the present appeals. This order deals with the two issues separately. 3. The first issue involved is whether the appellant is providing any safe vault service to Union Bank of Switzerland, Zurich and MKS Finance, Geneva. The appellant imports gold from Union Bank of Switzerland and MKS Finance, Geneva and holds the same with them till such time they find a customer. After the customer is identified and the price of the gold is confirmed, they have their mark up, collect money from cust....

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....ned by the appellant is consideration for charging service tax whereas the fact is that such profit is earned from Indian customer and allegation is about providing Safe Vault Service to foreign gold supplier . He further submitted that there is no allegation in the show cause notice that appellant had received any consideration from foreign supplier for providing safe vault service. He has taken us to para-26 of OIO dt. 25.03.2011 connected to appeal ST/358/2011 and submitted that the original authority has held as follows : "Accordingly, I hold that service tax is payable by the taxpayer on the services rendered by them to the foreign seller for safe-keeping of gold in their vaults under the banking and other financial services, on the....

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....to the appellant. Revenue considered such interest as consideration for demand of service tax. Therefore through various SCNs associated with the appeals Revenue raised demand of service tax on interest so earned by the appellants. Such demands were confirmed along with interest and imposition of penalties. Aggrieved by the said orders, appellant is before this Tribunal. 8. Heard Shri Raghavan Ramabhadran, Learned. counsel for the appellant. He has submitted that w.e.f. 1.7.2012 'interest' has been defined under clause (30) of Section 65B of Finance Act, 1994. Further, he has submitted that the contention of Revenue is that under clause (n) of Section 66D interest is exempted from service tax and that interest is to be treated as interest ....