2014 (4) TMI 1331

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....s on the appellant. We find that the appellants had understood the legal position correctly and had paid the service tax on the activity of sale and purchase of foreign exchange in accordance with law. We found that the proceedings initiated by the Revenue and demand confirmed invoking extended period was not at all in accordance with law and therefore, we consider it appropriate that appeal itself should be taken up for final decision rather than continue the tortuous proceedings against the appellant by only granting stay. 2. As mentioned in the order-in-appeal, the appellant is providing services under the category of rail travel agent, rent-a-cab operator, air-travel agency, tour operator and banking and other financial services as e....

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....her or not the consideration for such purchase or sale, as the case may be, is specified separately;] Rule 6(7B) of Service Tax Rules 1994 which is relevant for this purpose reads as under:- "The person liable to pay service tax in relation to purchase or sale of foreign currency, including money changing, provided by a foreign exchange broker, including an authorized dealer in foreign exchange or an authorized money changer, referred to in sub-clauses (zm) and (zzk) of clause (105) of section 65 of the Act, shall have the option to pay an amount calculated at the rate of 0.25 per cent of the gross amount of currency exchanged towards discharge of his service tax liability instead of paying service tax at the rate specifie....

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....or sale of foreign currency is not relevant for the purpose of levy of service tax." Here is a case where there is a clear mis-interpretation of clarification issued by the Board. The explanation was added only for the purpose that even if no consideration is mentioned or shown to have been received, service tax would still be leviable. This is what emerges from the definition of service and the provisions of Rule 6(7B) reproduced by us herein above. However, the learned Commissioner has relied upon this to demand service tax at 0.25% because according to him appellant was charging a paltry amount. Paragraph 14 of the order is relevant and is reproduced below:- "I observed that the appellant charged Exchange transaction fee of R....