Delhi HC agrees to hear banks' plea against service tax on minimum balance

A total of 13 banks had approached the high court claiming that the government had arbitrarily decided on the service tax

The Delhi High Court on Monday agreed to hear a petition filed by banks against the government for demanding Rs 38,000 crore as service tax.

The government made the demand from banks for “treating the commitment of customers to maintain minimum average balance (MAB) in bank accounts as a consideration for banking facilities provided free”.

A two-judge bench of Justices S Muralidhar and Talwant Singh agreed to hear the matter and has issued notice to the central government, the Central Board of Indirect Taxes and Customs (CBIC), the Goods and Services Tax Council, and other authorities. While posting the matter for further