Service tax not leviable on premium charged due to interest restructuring

Commissioner, Central Excise & Service Tax Vs Power Finance Corporation  (CESTAT Delhi) CESTAT Delhi held that premium charged due to interest restructuring is net present value of loss of interest and therefore not leviable to service tax under ‘banking and other financial services’. Facts- It was noticed that the respondent-assessee was providing loans for energy and energy efficiency projects, State Electricity Boards and private parties and even though the respondent had earned Rs. 08,94,64,916/- as premium of interest for restructuring of loans in 2008-2009 and Rs. 06,76,027/- du...