CANARA BANK Vs. COMMISSIONER OF SERVICE TAX, BANGALORE

JUDGEMENT

(1.) HEARD both sides extensively on the stay petition.

(2.) THE application seeks waiver of pre -deposit of service tax amounting to Rs. 10,55,38,108/ - along with interest and penalty of equal amount under Section 78 and a penalty of Rs. 10,000/ - under Section 77 of the Finance Act.

(3.) THE relevant facts, in brief, are that the appellants are rendering Banking and Other Financial Services (BOFS, for short). They have collected totally an amount of Rs. 91,74,86,863/ - under the category of out of pocket expenses including an amount of Rs. 5,56,40,289/ - under the category of SWIFT charges during the period April 2005 to March 2010. The Department issued a show cause notice dated 11 -10 -2010 alleging that these amounts should be treated as part of value of taxable services viz. BOFS and in pursuance of the said show -cause notice, Commissioner has passed the impugned order with consequences as mentioned above.