ABN AMRO BANK Vs. CCE

JUDGEMENT

(1.) THE Appellant came in appeal against the Order -in -Original dated 21.1.2009 giving rising to following consequences:

(2.) BASING on the result of an investigation, Show Cause Notice (SCN) dated 3.10.2007 (Ref: available at page 45 of the appeal folder) was issued to the Appellant making allegation of evasion of service tax to the extent adjudicated as aforesaid in respect of "credit card services" provided by the Appellant. Ld. adjudicating authority examining the charges in the SCN, reply of the Appellant thereto filed on 30th December, 2008 (available at page 88 of the appeal folder) and taking into consideration the law in force at the relevant point of time, i.e. for the period 1.6.2002 to 30th April, 2006, held that the nature of service provided by the Appellants was "credit card services" within the meaning of the term "banking and other financial services" and invoked the taxable entry under Section 65(72)(zm) of the Act for levy of service tax on the taxable service provided by the Appellant. According to the scope of the term "banking and other financial services" included interchange fees received from "acquiring bank" and credit card charges received from card holders by the Appellant. The nature of service provided by the Appellant bank fetched it the receipt from "acquiring bank" and made it liable to service tax for which service tax to the extent aforesaid was imposed in adjudication followed by penal consequences of law and levy of interest. Ld. Adjudicating Authority while adjudicating the matter considered meaning of the term "banking and other financial services" with the help of the definition given by Section 65(10) and later named as Section 65(12) of the Act.

(3.) THE procedure followed in banking industries in this context is summarized as under: