Giving of loans by Banks to Borrowers is not a service

State Bank of Patiala Vs Commissioner, Central Excise and Central Goods and Service Tax (CESTAT Delhi) Appellant urges that the show cause notice is misconceived, as prima facie giving of loans is not an output service, rather money in real terms somewhat akin to goods, goes out of the bank when the loan is advanced. Secondly, only for the reason that interest earned by the Bank on the loans is not chargeable to service tax, it cannot be said that giving of loan is exempt service. It is further urged that admittedly appellant have maintained proper books of accounts and statutory registers, an...