Case Law Details
Indian Overseas Bank Vs Commissioner of Central Excise & ST (CESTAT Chennai)
Revenue is of the opinion that only if the loan is in the form of Indian rupee and interest is earned on that, then alone under the provisions of Valuation Rules or Section 66D of Finance Act, 1994 interest is not to be treated as part of consideration for determination of service tax. We do not find any support from any of the provisions of law for such contention by identified by Valuation Rules or Section 66 is interest only on cash loan. We therefore hold that service tax confirmed on interest earned by the appellant by providing metal as loan is not sustainable. We therefore set aside such demand on the interest with interest and penalty.
FULL TEXT OF THE CESTAT JUDGEMENT
All these appeals are taken up for common hearing since the issues involved in all of them are same and appellant is also the same. Therefore all the appeals are being taken together for decision and this common order is being passed.
2. Brief facts of the case are that the appellant is a banking company and is involved in sale and purchase of gold. There are two issues in the present appeals. This order deals with the two issues separately.
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