UCO BANK Vs. COMMISSIONER OF SERVICE TAX

JUDGEMENT

(1.) THIS is an Appeal filed against Order -in -Original NO. 58/COMMR/ST/KOL/2011 -12 DATED 09.01.2012 passed by the Commissioner of Service Tax, Kolkata.

(2.) BRIEFLY stated the facts of the case are that the Appellant, a Public Sector Bank, are engaged in providing Taxable Services under the category, Banking and Other Financial Services, as defined under Section 65(12) of the Finance Act, 1994. A show cause was notice issued to them on 09.04.2010 alleging short payment of service tax of Rs. 10,62,53,749/ -, Education cess of Rs. 21,25,075/ - & Secondary Higher Education Cess of Rs. 9,10,521/ - on account of rendering Bill discounting service during the period from 01.10.2004 to 31.03.2009 under the said category of Banking and Other Finance Services and on account Renting of Immovable period for the period 2007 -2008 to 2008 -2009 service tax of Rs. 8,94,288/ - & Education Cess of Rs. 17,886/ - & Secondary Higher Education Cess of Rs. 8,943/ -. Also, it is proposed to recover an amount of Rs. 5,99,88,814/ - being not paid in accordance with Rule 6(3A)(c) of CCR, 2004 even though cenvat credit was availed on common input services used in providing both taxable and exempted services for the period April 2008 to March 2009.

(3.) AT the outset, the Ld. CA for the Appellant submitted that the appellant had accepted the liability of service tax under the category of renting of immovable property, and do not dispute it in the present appeal. However, the appellant dispute the liability of service tax on collection of interest, against bill discounting facility, extended by the appellant to its customers. Also, the recovery of the amount under rule 6(3A) of CCR, 2004 is disputed.