Cases Covered:

Ramesh Kumar Patodia Vs. City Bank N.A. and Ors.

Facts of the cases:

The bank offered the loan to the petitioner. It was given due to his eligibility on the credit card. The loan was repayable in 12 equal installments.
The bank charged GST on the amount of interest. The petitioner thus filed the case to get the benefit of exemption of interest.
He argued his case personally.

Observations & Judgement of the court:

As respondent City Bank granted Loan to the appellant repayable with interest it is to be treated as loan simpliciter and cannot be equated with Credit Card. The basic difference between loan and credit Card is that the former is granted as a necessity and is a welfare scheme and the later is a facility granted to customers to get goods and services on credit from 3rd parties by availing the Credit Card Services of the Bank regarding payment.
Thus loan and Credit Card Services cannot be equated. Thus loan to a Credit Card holder is to be treated as a loan and nothing else. Hence this Appeal stands allowed and the order passed by the learned trial judge is set aside.

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