2016 (4) TMI 628

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....ant Murthy, Adv For the Respondent : Shri D Nagvenkar, Addl Commissioner (AR) ORDER Per: M V Ravindran: This appeal is directed against Order-in-Original No. 409/31/V/2011/COMMR/KS/ST dated 28/11/2011 passed by the Commissioner of Central Excise, Mumbai -V. 2. The relevant facts that arise for consideration are that the appellant herein had raised external commercial borrowings (ECB....

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....penalty has been imposed. 3. The learned counsel would draw our attention to the facts of the case, show cause notice and also the order-in-original. It is his submission that they were contesting the taxability of the amount in their hands under reverse charge mechanism and such tax liability does not arise. He fairly submits that the issue is now settled by the majority decision of the Tribun....

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.... for raising ECB for the appellant. It is undisputed that the amounts are paid by the appellant and under the reverse charge mechanism service tax liability arise. We find that the majority decision in the case of Tata Steel ltd. (supra) has settled the issue, wherein it has held that service tax liability under reverse charge mechanism arises on the person making the payment for the services rend....