2016 (1) TMI 260

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.... : Shri A B Kulgod, Asstt Commissioner (AR) ORDER   Per P S Pruthi The appellant availed external commercial borrowings (ECB) in the form of convertible foreign currency bonds in April 2005 and April 2006 and raised capital in overseas market in the form of Global Depository Receipts (GDR). To raise funds for their activities, the appellant availed merchant banking services from Citigroup....

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....pay service tax under section 66A of the Finance act 1994 read with Taxation of Services (provided from outside India and received in India) Rules 2006. The Commissioner in the impugned order, confirmed the demand for Rs. 2,33,94,233 under Section 73 (1) and also imposed penalties under sections 76 and 77 as well as equivalent penalty under Section 78 of the Finance Act. 3. The appellant paid the....

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....During that time the appellant had a genuine belief that tax was not payable as the funds were raised abroad, the entities who had provided the service of raising of funds were located abroad, the service was consumed outside India as the funds were raised outside India through the issue of ECB and GDR. The second contention is that, in any case, the service tax paid by them would be available as ....