2015 (2) TMI 348

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....d certain fees/charges to non-resident service providers who acted as "Mandated Lead Arrangers' to the said ECB issue. Such services rendered by the non-resident service providers to the appellant amounted to a taxable service classifiable under the category of 'Banking and other Financial Services' as 'merchant banking services' as defined under Section 65(12) of the Chapter-V of the Finance Act, 1994. The appellant paid certain amounts towards the service provided by non-resident service providers which is subject to Service Tax under Section 66A of the Finance Act, 1994. During the course of investigation, it was pointed out to the appellant that they are required to pay Service Tax on the said activity which the appe....

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....equently, no penalties are imposable on the appellant. To support his contention the appellant relied on the decision of Indian Oil Corporation Ltd. vs. Commissioner of C.Ex. Mumbai- II 2010 (262) E.L.T. 751 (Tri,Mumbai), Cosmo Films Ltd. vs. Commissioner of Central Excise, Aurangabad 2010 (251) E.L.T. 130 (Tri-Mumbai), Commr. Of C. Ex. & Cus. Vadodara - II vs. Indeos ABS Limited 2010 (254) E.L.T. 628 (Guj.), Commissioner Vs. Indeos ABS Ltd. 2011 (267) E.L.T. A155 (S.C.). He also relied on the decision of Commissioner of Service Tax, Bangalore Vs. Master Kleen 2012 (25) S.T.R. 439 (Kar)., C.C.E & S.T. LTU, Bangalore vs. Adecco Flexione Workforce Solutions Ltd. 2012 (26) S.T.R. 3 (Kar.), Commissioner vs. Tejas Agency 2014 (34) STR 803 (Guj.)....

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.... the Case of Indeos ABS Ltd. (supra) where it was held that since goods cleared to sister concern, whatever duty payable is available as credit to their own unit. Hence, the entire is revenue neutral. Therefore, no such benefit accrues to the exchequer; in that case it was held that there is no benefit to the exchequer. The whole exercise is revenue neutral which was affirmed by the Hon'ble Apex Court. Further in the case of Indian Oil Corporation Ltd. (supra) where the appellant after taking Cenvat credit on various inputs cleared as such to their other units indicated the duty payable. However, neither the duty was actually paid and nor the issue of such invoices was declared to the department, in that case it was held by this Tribuna....