Custom, Excise & Service Tax Tribunal
M/S Small Industries Development vs Cst, Ahmedabad on 26 April, 2018
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL AHMEDABAD COURT NO. 1 Service Tax Appeal No. 12542 of 2010 (Arising out of Order-in-Appeal No. AHM-SVTAX-000-APP-013-14-15 dated 22.04.2014 passed by the Commissioner (Appeals-IV) Central Excise, Ahmedabad) DATE OF HEARING : 26.04.2018 DATE OF DECISION : 26.04.2018 M/s Small Industries Development . Appellants Bank of India (Rep by Sh. Jigar Shah, Adv.) VERSUS CST, Ahmedabad . Respondent
(Rep. by Sh. S. Chitkara, DR) CORAM : HONBLE JUSTICE (DR.) SATISH CHANDRA, PRESIDENT HONBLE DR. D.M. MISHRA, MEMBER (JUDICIAL) HONBLE MR. C.J. MATHEW, MEMBER (TECHNICAL) FINAL ORDER NO. A/10843/2018 PER JUSTICE (DR.) SATISH CHANDRA :
The assessee-Appellants are engaged in providing the finance to various customers. Sometimes the payment is received pre-mature for which the assessee-Appellants charged the pre-payment charges. The issue is regarding the taxability of this pre-payment charges.
2. The Delhi Bench of the Tribunal vide Final Order dated 20.01.2011 has held in favour of the assessee-Appellants that the said amount is not taxable. On the other hand, the Ahmedabad Bench of the Tribunal in the case of Housing and Urban Development Coproration Ltd. (HUDCO) vide Final Order dated 25.11.2011 has taken a contrary view by mentioning that pre-payment charges are subject to tax.
3. In view of the above, the matter was referred to the Larger Bench.
4. Both parties have agreed that the matter has reached before the jurisdictional High Court at Ahmedabad [Housing and Urban Development Corporation Ltd. Vs Commisioner, 2015 (40) STR J316 9Guj.)]
5. During the course of arguments, both parties have also agreed that without the final verdict of the jurisdictional High Court, the present reference cannot be decided.
6. With the consent of both the sides, we grant liberty to the assessee-Appellants to come again after having the final verdict from the jurisdictional High Court, but within the prescribed time, if advice so.
7. With the aforesaid liberty, the reference stands disposed of. (Dictated & pronounced in the open court) (C.J. MATHEW) MEMBER (T) (Dr. D.M. MISRA) MEMBER (J) (JUSTICE Dr. SATISH CHANDRA) PRESIDENT Golay 2 Appeal No. ST/12542/14