https://www.taxtmi.com/caselaws?id=771645 CESTAT Chennai allowed the appeal of a 100% EOU against service tax demand on foreign bank charges under Banking and Financial Services category. The tribunal held that no service provider-recipient relationship existed between the appellant and foreign banks, as charges were deducted by foreign banks from export proceeds and passed through Indian banks. Following precedent in M/S. Annur Cotton Mills case, the tribunal ruled service tax liability does not arise on such foreign bank charges. The demand, along with penalties, interest, and late fees, was set aside as unsustainable. en-us Tue, 27 May 2025 00:00:00 +0530 Thu, 29 May 2025 08:41:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771645 CESTAT Chennai allowed the appeal of a 100% EOU against service tax demand on foreign bank charges under Banking and Financial Services category. The tribunal held that no service provider-recipient relationship existed between the appellant and foreign banks, as charges were deducted by foreign banks from export proceeds and passed through Indian banks. Following precedent in M/S. Annur Cotton Mills case, the tribunal ruled service tax liability does not arise on such foreign bank charges. The demand, along with penalties, interest, and late fees, was set aside as unsustainable. Case-Laws Service Tax Tue, 27 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771645