No service tax on corporate guarantee to group company without consideration: SC

Commissioner of CGST and Central Excise Vs Edelweiss Financial Services Ltd. (Supreme Court) Assessee argued that issuance of corporate guarantee to a group company without consideration would not fall within banking and other financial services and is therefore not taxable service. He also read Section 65B (44) of the Finance Act 1994 to point out that the definition of service would indicate that it relates to only such service which is rendered for valuable consideration. The revenue alleged that they have provided “banking or financial service” as corporate guarantee is like a bank gua...