https://www.taxtmi.com/caselaws?id=773054 CESTAT Mumbai held that upfront fees charged by Asian Development Bank on external commercial borrowing are exempt from service tax. Following precedent in Coastal Gujarat Power Ltd, the tribunal determined that while section 66A of Finance Act 1994 deems service recipients as liable when providers are outside India, international financial institutions like ADB enjoy immunity under international agreements and domestic legislation. This immunity extinguishes tax liability under section 66, preventing taxation of either provider or recipient. The impugned order was set aside and appeal allowed. en-us Wed, 29 Jan 2025 00:00:00 +0530 Wed, 18 Jun 2025 09:04:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=773054 CESTAT Mumbai held that upfront fees charged by Asian Development Bank on external commercial borrowing are exempt from service tax. Following precedent in Coastal Gujarat Power Ltd, the tribunal determined that while section 66A of Finance Act 1994 deems service recipients as liable when providers are outside India, international financial institutions like ADB enjoy immunity under international agreements and domestic legislation. This immunity extinguishes tax liability under section 66, preventing taxation of either provider or recipient. The impugned order was set aside and appeal allowed. Case-Laws Service Tax Wed, 29 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=773054