Service Tax on Indian Bank Barred

The Chennai Bench of the CESTAT set aside substantial service tax demands raised against Indian Bank after holding that the extended period of limitation had been wrongly invoked. 

The Tribunal observed that all transactions were duly recorded in the bank’s statutory books, the issues involved interpretation of law, and there was no evidence of suppression or intent to evade tax. 

Consequently, the entire demand, interest and penalties were quashed.