No service tax on interest earned by providing metal as loan

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 ap...