https://www.taxtmi.com/caselaws?id=796721 Letter-of-credit charges recovered by a trader from high-seas-sale buyers formed part of the composite consideration for imported goods under a principal-to-principal sale arrangement. Issuance of the letter of credit, including the payment guarantee, was performed by the bank rather than the trader, so no service-provider and service-recipient relationship existed between the trader and buyer for banking or financial services. Reimbursement alone did not constitute consideration for a service. Following introduction of the negative-list regime, the transaction remained a transfer of title in goods, and inseverable pre-import letter-of-credit costs could not be separated for service-tax levy. No service tax was payable on those charges. en-us Fri, 07 Aug 2026 00:00:00 +0530 Mon, 10 Aug 2026 08:37:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796721 Letter-of-credit charges recovered by a trader from high-seas-sale buyers formed part of the composite consideration for imported goods under a principal-to-principal sale arrangement. Issuance of the letter of credit, including the payment guarantee, was performed by the bank rather than the trader, so no service-provider and service-recipient relationship existed between the trader and buyer for banking or financial services. Reimbursement alone did not constitute consideration for a service. Following introduction of the negative-list regime, the transaction remained a transfer of title in goods, and inseverable pre-import letter-of-credit costs could not be separated for service-tax levy. No service tax was payable on those charges. Case-Laws Service Tax Fri, 07 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796721