2008 (8) TMI 69

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....he Appellant Shri A. P. Tiwari, Jt. CDR, for the Respondent [Order per: M. Veeraiyan, Member (Technical)] - Heard both sides on the stay petition. 2. The applicant is a banking institution who inter alia, provides credit card services. The credit card services became taxable w.e.f.16.7.2001. The applicant is paying service tax on various charges collected by them from card holders under t....

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....d under the same services. 5.1 Ld. Advocate for the appellant submits that the various establishments (which sell the goods and provide services) and which accept the credit cards issued by them to the various card holders cannot be treated as customers, only card holders can be treated as customers. He submits there establishments are their clients or partners in business and not their custome....

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.... credit card services which refer only to the transactions between the Bank issuing the credit cards and the card holders. He also draws our attention to the Circular dated 28.02.2006 (para 3.19) while introducing comprehensive services on credit card (w.e.f. 1.5.2006) to distinguish the scope of the services prior to 1.5.2006.   6. Ld. Jt. CDR vehemently opposes the said petition. Sh....

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.... the view that, the Bank is certainly providing services to the card holders as well as to the merchant establishments selling goods and providing services.  7.2 However, we are not prima facie convinced that during the relevant period the term 'customer' will include such merchant establishments. We also find support for such view in the circular of the Board issued on 09.07.2001 at the t....