CESTAT,
BANKING AND OTHER FINANCIAL SERVICES
KERALA TRANSPORT DEVELOPMENT FINANCE
v.
Commissioner of Central Excise
Dr. S. L. Peeran, Judicial Member
T.K. Jayaraman, Technical Member
Order No. 458/2007
Appeals No. ST/st/207/06
In ST/333/06
May 18, 2007
Section 65, read with section 86 of the Finance Act, 1994 - Banking
and other Financial services - Service tax under category of ‘banking and other
financial services’ was demanded from assessee for period prior to 10-9-2004 on
ground that it was carrying on hire purchase business - However, a retired
Supreme Court judge an examination of entire agreement opined that assessee was
not doing hire purchase business but was doing only ‘lending business’ and was
not covered under ‘Banking and other financial services’ prior to 10-9-2004 -
Whether assessee was only undertaking lender and borrower services, prima facie
it was not covered under category of ‘banking and other financial services’ in
terms of decision in case of Bajaj Auto
Finance v. CCE (2007) (5) STR 139/[2007] 6 STT 322 (Mum-CESTAT), and therefore,
stay application was to be allowed granting waiver of pre-deposit and staying
its recovery - Held, yes [Para 2]
CASE REVIEW:
Bajaj Auto Finance v. CCE (2007) (5) STR 139/[2007] 6 STT 322 (Mum-CESTAT) – followed.