Delayed payment charges collected from customers from 01.07.2012 is not leviable to service tax

Cholamandala Investment &  Finance Company Ltd Vs Commissioner of GST (CESTAT Chennai) CESTAT Chennai held that service tax could not be levied on ‘delayed payment charges’ collected by the appellant from their customers from 01.07.2012 also. Facts- The Appellant, M/s. Cholamandalam Investment & Finance Company Ltd. (CIFCL) are engaged in the business of financing activities such as automobile financing, consumer loan, loans against securities etc. During the course of audit conducted by the officers of the Service Tax Commissionerate, it was noticed that CIFCL had not paid servic...