𝗦𝘂𝗽𝗿𝗲𝗺𝗲 𝗖𝗼𝘂𝗿𝘁 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗘𝘅𝗲𝗺𝗽𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝗖𝗼𝗺𝗺𝗶𝘀𝘀𝗶𝗼𝗻 𝗿𝗲𝗰𝗲𝗶𝘃𝗲𝗱 𝗯𝘆 𝗦𝗰𝗵𝗲𝗱𝘂𝗹𝗲𝗱 𝗕𝗮𝗻𝗸𝘀 𝗳𝗿𝗼𝗺 𝗥𝗕𝗜 📢 𝗧𝗵𝗲 𝗦𝘂𝗽𝗿𝗲𝗺𝗲 𝗖𝗼𝘂𝗿𝘁 𝗵𝗲𝗹𝗱: "Commission received by Scheduled Banks for rendering banking or financial services to the Reserve Bank of India (RBI) is exempt from service tax. Revenue appeal dismissed."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗣𝗮𝗿𝘁𝗶𝗲𝘀: CST – Bangalore vs. Canara Bank 𝗜𝘀𝘀𝘂𝗲: Canara Bank claimed exemption on commission received from RBI for banking services under Notification 22/2006-ST. The Supreme Court upheld the exemption, dismissing the Revenue's appeal.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Supreme Court upheld its previous ruling in State of Madras vs. Cement Allocation Coordinating Organisations, affirming that services by Scheduled Banks as statutory agents of RBI under Section 45 of the RBI Act are exempt from tax. The Court dismissed the Revenue's appeal, agreeing with the Tribunal’s decision.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: CST – Bangalore vs. Canara Bank 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 25 January 2023 📜 This ruling clarifies the exemption of commission earned by Scheduled Banks for services rendered to RBI.