https://www.taxtmi.com/caselaws?id=754017 CESTAT Chennai allowed the appeal, setting aside service tax demand on payments to foreign banks. The tribunal held no service provider-recipient relationship existed between appellant and foreign entity, as contract was between foreign buyer and service provider, both outside India. The 3% deduction from invoice price constituted trade discount as indicated in purchase order and permitted under RBI's FEMA regulations. No extended limitation period or penalties applied since appellant lacked contractual relation with service provider, had no intent to evade tax, clearly showed deductions in shipping bills, claimed drawback only on net amount, and situation remained revenue neutral for exporter entitled to service tax rebate. en-us Fri, 14 Jun 2024 00:00:00 +0530 Sat, 15 Jun 2024 08:20:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754017 CESTAT Chennai allowed the appeal, setting aside service tax demand on payments to foreign banks. The tribunal held no service provider-recipient relationship existed between appellant and foreign entity, as contract was between foreign buyer and service provider, both outside India. The 3% deduction from invoice price constituted trade discount as indicated in purchase order and permitted under RBI's FEMA regulations. No extended limitation period or penalties applied since appellant lacked contractual relation with service provider, had no intent to evade tax, clearly showed deductions in shipping bills, claimed drawback only on net amount, and situation remained revenue neutral for exporter entitled to service tax rebate. Case-Laws Service Tax Fri, 14 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754017