TaxTMI 
TaxTMI 
2026 (5) TMI 264
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.... other Financial Services. During the course of verification, it was noticed that the appellant was engaged in the services of lending money and accepting deposits for which they collect certain amount as processing and other charges, for which notice was issued demanding service tax. The Commissioner (Appeals) in the impugned order confirmed the service tax amount and also imposed penalties on the appellant. Aggrieved by this order, the appellant is in appeal before us. 2. The Learned Chartered Accountant submits that the appellant is not governed or controlled by the Reserve Bank of India and are not banking company as defined under Section 65(11) of the Finance Act, 1994. It is submitted that in the case of Commissioner of Income Tax ....
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....in the impugned order. 4. Heard both sides. This Tribunal vide Final Order No. 20048-20072/2025 dated 13.01.2025 has disposed of a bunch of appeals in the case of Karavali Credit Cooperative Society Ltd. wherein it was observed as follows: "6. The short issue involved in the present appeal for consideration is whether the appellants are required to discharge service tax on different services rendered by them to their Members. It is not in dispute that the appellant is registered under Karnataka Cooperative Society Act, 1959 and the Membership is restricted to the persons staying within the territorial limit of Dakshina Karnataka including villages of the district and all the taluks of the Udupi district. Also, it is not in dispu....
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....ther for consideration. "Person" is defined in Section 65B(37) as including, inter alia, a company, a society and every artificial juridical person not falling in any of the preceding sub-clauses, as also any association of persons or body of individuals whether incorporated or not. 76. What has been stated in the present judgment so far as Sales Tax is concerned applies on all fours to Service Tax; as, if the doctrine of agency, trust and mutuality is to be applied qua members' clubs, there has to be an activity carried out by one person for another for consideration. We have seen how in the judgment relating to Sales Tax, the fact is that in members' clubs there is no sale by one person to another for consideration, as one cannot....
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....) as "anybody established or constituted by or under any law for the time being in force". "Body of persons", therefore, would not, within these definitions, include a body constituted under any law for the time being in force. 81. When the scheme of Service Tax changed so as to introduce a negative list for the first time post-2012, services were now taxable if they were carried out by "one person" for "another person" for consideration. "Person" is very widely defined by Section 65B(37) as including individuals as well as all associations of persons or bodies of individuals, whether incorporated or not. Explanation 3 to Section 65B(44), instead of using the expression "person" or the expression "an association of persons or bodie....