TaxTMI 
TaxTMI 
TaxTMI 
2024 (1) TMI 6
X X X X Extracts X X X X
X X X X Extracts X X X X
....d under Sections 76 and 78 of the Finance Act, 1994. 2. In the impugned order service tax has been demanded under the category of 'Banking and Financial Services' on the differential amount of Rs.1,85,06,413/- for the period 10.09.2004 to 31.03.2008. The Appellant has received service charges @1% of the total salary disbursed in respect of two primary schools. The contention of the Appellant is that the service has been rendered on behalf of the state government. The charges were received only to defray the expenses incurred by the bank. the said service would not fall within the ambit of 'Banking and Financial Services' as defined under Section 65(12) of the Finance Act, 1994. They also submitted that the demand is time ba....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r, the Appellant has given a break of the demand under four different categories. 5.1. Regarding the demand made under the category of 'Banking and Financial Services' on the differential amount of Rs.1,85,06,413/-, we observe that the Appellant has received this amount as service charges @1% of the total salary disbursed in respect of two primary schools, for the period 10.09.2004 to 31.03.2008. The contention of the Appellant is that the service has been rendered on behalf of the state government. The charges were received only to defray the expenses incurred by the bank. It is their contention that the said service would not fall within the ambit of 'Banking and Financial Services' as defined under Section 65(12) of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of Shri Rajkot District Co-Operative Bank Ltd. Vs Commissioner of Central Excise and service tax, Rajkot, vide Final Order No. 11281/2023 dated 19.06.2023, is squarely applicable in this case. The relevant Para of the said decision is reproduced below:. "We have carefully considered the submissions made by both the sides and perused the record. We find that there is no dispute in the facts that the appellant have provided the service as Commission Agent for collection of premium and related activities but the same is in relation to the insurance under the Government's various schemes. Both the lower authorities have demanded service tax on the ground that service provided by the appellant is not an insurance service. The Notification No.....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... recorded the claim of notification by the appellant but except for the general findings, no specific finding on the admissibility of notification 3/2000-ST was given. However, on reading and interpretation of the notification 03/2000-ST, it does not give scope for denial of exemption. Therefore, we are of the view that the appellant are entitled for the exemption notification 3/2000-ST and not liable to pay any service tax on the commission received in relation to general insurance under government's various schemes. Accordingly, the impugned order is set aside and the appeal is allowed. " 5.4. By following the ratio of the decision cited above, we hold that the demand confirmed in the impugned order on this count is not sustainable. 5.5....