TaxTMI 
TaxTMI 
2021 (7) TMI 1183
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....as been dismissed. 2. M/s Indian Overseas Bank [the appellant] is a Nationalized Bank engaged in providing 'Banking and Other Financial Services.' The dispute in the present appeal relates to a demand of service tax levied for the period from 01.04.2014 to 31.03.2015 under the Finance Act, 1994 [the Finance Act]. The details are as follows: S. No. Particulars of Disputes Case of the Department Demand I. Interest earned from lending of Gold. Interest earned on gold loans is taxable and does not fall within negative list as Section 66D(n) of the Act excludes interest earned only on monetary Loans and advances, but not to lending of Gold. 46,19,237 II. Safe-vault services allegedly provided to foreign sellers. The Appellant is rend....
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....asing gold, a back-to-back transaction of purchase (from the foreign supplier) and sale (to the customer) is executed by the appellant. In the intervening period between receipt of the imported Precious Metal and sale to consumers, the appellant facilitates the safekeeping of the imported Precious Metal in its own vaults. The appellant sells the Precious Metal to its customer with a profit margin upon payment of applicable Sale tax. 6. According to the appellant, the following facts are undisputed: i. The demand on 'safe-vault' services allegedly rendered to foreign sellers is made on the profit margin earned by the appellant from sale of imported gold. ii. There is no consideration agreed between the appellant and the foreign sellers ....
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....sical custody. Immediately on purchase of gold, the same gold is delivered to their customers. It appeared to Revenue that after the import of gold and till such time customer is identified, gold is being held by appellant and during said period the ownership of gold is with the Union Bank of Switzerland or MKS Finance, as the case may be, and therefore appellant is providing Safe Vault Service which is part of other financial services to Union Bank of Switzerland or MKS Finance as the case may be. 4. Heard Shri Raghavan Ramabhadran, Ld. Counsel for the appellant. He has submitted that as per the order of adjudicating authority, the profit earned by the appellant is consideration for charging service tax whereas the fact is that such prof....
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....or demand of service tax. 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 earned on cash loan. Further, he has submitted that contention of Revenue is that at subrule (2) clause (iv) of Rule 6 of Service Tax (Determination of Value) Rles,2006 which provides that interest on loan shall not be included in assessable value deals only with interest on cash loan given. He further submitted that contention of Revenue in th....