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Commissioner Of Cgst And Central Excise vs M/S Edelweiss Financial Services Ltd. on 17 March, 2023

68. However, now the issue is covered under the judgment of the Hon'ble Apex Court in the case of Commissioner of CGST & Central Excise Vs. Edelweiss Financial Services Ltd., (supra), wherein in specific words the Hon'ble Apex Court has observed that, issuance of corporate guarantee to group companies without any consideration would not fall within the ambit of taxable service. Therefore, there is a substance in the contention of the learned Counsel for the Petitioner that execution of corporate guarantee is in the nature of contingent contract which becomes enforceable only at the instance of the bank/financial institution in the event of a default. There was no flow of consideration for the rendering of services. Therefore, taxability does not arise.
Supreme Court - Daily Orders Cites 5 - Cited by 0 - H Roy - Full Document
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