2023 (4) TMI 170

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....Hon'ble Mr. Justice Hrishikesh Roy And Hon'ble Mr. Justice Manoj Misra For the Petitioner(s) : Mr. N. Venkatraman, A.S.G., Mr. Tathagat Sharma, Adv., Mr. Mukesh Kumar Maroria, AOR, Mr. V.C. Bharathi, Adv., Mr. Sidharth Sinha, Adv., Mr. Pratyush Srivastava, Adv. And Mr. Bhuvan Kapoor, Adv. For the Respondent(s) : Mr. Bharat Rai Chandani, Adv., Mr. Aneesh Mittal, AOR, Ms. Komal, Adv., ....

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....suance of corporate guarantee to a group company without consideration would not fall within banking and other financial services and is therefore not taxable service. He would also read Section 65B (44) of the Finance Act 1994 to point out that the definition of service would indicate that it relates to only such service which is rendered for valuable consideration. 5. The counsel would next a....

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....g provisions of Section 67(1) of the Finance Act, 1994 become a futile exercise." 6. Mr. Rai Chandani then read paragraphs 8 and 9 of the judgment of the Tribunal, which are extracted below :- "8. The criticality of 'consideration' for determination of service, as defined in section 65B(44) of Finance Act, 1994, for the disputed period after introduction of 'negative list' regime of ta....

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....tion 65B(44) of Finance Act, 1994. 'Consideration' is the recompense for the 'contractual' undertaking that authorizes levy while 'assessable value' is a determination for computing the measure of the levy and the latter must follow the former." 7. The above would suggest that this was a case where the assessee had not received any consideration while providing corporate guarantee to its group ....