Writ Petition No. 3247 of 2015. Case: Axis Bank Ltd. Vs Union of India. High Court of Bombay (India)

Case NumberWrit Petition No. 3247 of 2015
CounselFor Appellant: Shri V. Sridharan, Senior Counsel, with Sanjay Agarwal i/b. Prompt Legal, Advocates. and For Respondent: Shri V. Sridharan, Senior Counsel, with Sanjay Agarwal i/b. Prompt Legal, Advocates.
JudgesB.R. Gavai and A.S. Gadkari, JJ.
IssueFinance Act, 1994 - Sections 65(12), 73; Constitution of India - Article 226
Citation2015 (39) STR 959 (Bom)
Judgement DateApril 06, 2015
CourtHigh Court of Bombay (India)

Order:

  1. What is impugned in the present petition is a letter demanding payment of interest. It is not in dispute that the petitioner has already paid the Service Tax liability for the period post-1-5-2006.

  2. It is the contention of Shri Jetly that, in view of the judgment of the learned CESTAT at Mumbai in the case of Commissioner of Service Tax, Mumbai v. HDFC Bank Ltd., HSBC Bank Ltd. & ICICI Bank Ltd. 2013-TIOL-1363-CESTAT-MUM and the CESTAT at Delhi in the case of M/s. ABN Amro Bank v. CCE, Noida 2011-TIOL-1147-CESTAT-Del, there is no dispute with regard to the liability of the present petitioner to pay Service Tax after 1-5-2006. It is his contention that the only issue that was referred to the Larger Bench is with regard to the taxability of the acquiring Bank for the services rendered prior to that period.

  3. Perusal of both the Judgments of the Mumbai Bench in the case of HDFC Bank and of Delhi Bench in the case of M/s. ABN Amro Bank, would reveal that, both the Judgments relate to the period prior to 1-5-2006. At least, prima facie, we find that there is no adjudication with regard to the period after 1-5-2006.

  4. Perusal of the communication at page 36 would reveal that a meeting was held between the representatives of the Indian Banks'' Association and one Mr. M.R.R. Reddy, Addl. Commissioner of Service Tax Mumbai. Perusal thereof would also reveal that entire arrangement of credit card business was explained to Mr. Reddy. It was however suggested by Mr. Reddy that due to complexity of the matter, a representation should be made to Central Board of Excise and Customs (C.B.E.&C.) for seeking a clarification. It was further suggested that since the period of limitation was near completion, in respect of the return filed for the period from April 2007 to September 2007, the concerned banks should make payment of Service Tax due for that period. It was further agreed that the Service Tax department will not take any further action against the banks till a clarification is obtained from C.B.E.&C. It was further agreed that if C.B.E.&C. decides in favour of the banks, the Service Tax department will refund the Service Tax paid.

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