Service tax on credit card emi loan interest

I made purchase of Rs 40000 and my Merchant provided option to get them converted into 12 EMIs. My Credit Card bank applied 14% ROI on annual basis. They did not charged any processing fee but they are charging Service Tax 15% on Interest Amount of each EMI. According to them this is as per Section 65 (105) (zzzw) of the Finance Act, 1994, “Taxable Services” means any service provided or to be provided to any person, by any other person, in relation to credit card, debit card, charge card or other payment card service, in any manner. Can Credit Card company charge Service Tax on EMI Interest Component ?