CESTAT Mumbai Upholds Service Tax Assessment for Foreign Banking Charges

The Appellate Tribunal CESTAT Mumbai upheld a service tax assessment of Rs. 1,47,18,765 against the applicant for banking charges paid to foreign bankers during specific periods. The Tribunal exempted the applicant from making a pre-deposit of the entire amount pending the appeal, citing a precedent set in a case involving Reliance Industries Ltd.

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The Appellate Tribunal CESTAT Mumbai confirmed a service tax of Rs. 1,47,18,765 against the applicant for the period April 2006 to July 2008 and February 2009 to March 2010 for banking charges paid to foreign bankers. The Tribunal waived the requirement of pre-deposit of the entire amount during the appeal, following a similar decision in the case of Reliance Industries Ltd.

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