2017 (6) TMI 114

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....Shri. S.J. Sahu, Asst. Comm. (AR) for respondent ORDER Per: Ramesh Nair 1. The appellants have pre-sanctioned credit limit with their Bank for establishment of letters of credit (hereinafter referred to as L/C limit). Various importers, who import goods into India approach the appellants for availing the facility of utilization of the appellant's L/C limit with the appellant's bank for pa....

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....ding the service the appellant rendered the services of procurement of goods or services which are input for the clients. This view was taken on the ground that the appellant is engaged in procurement of imported goods which are inputs for the clients. Accordingly, the demand of service tax and corresponding penalties were imposed. Being aggrieved by the impugned order, the appellants are before u....

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.... a person producing goods or providing services would be taxable under this category. He submits that in the present case, the importers are traders, therefore, even if it is presumed that the procurement of goods is involved but the said goods is not input for their clients. For this reason also the service does not fall under the clause (iv) of Section 65 (19) of the Finance Act, 1994. 3. Shr....

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.... the proposed category. In the facts of the present case, it is undisputed that the appellant is not procuring any goods for their clients. The goods which was referred by the lower authorities is the imported goods, which was directly imported by the various importers. The service of the appellant is confined to only providing the facility of L/C through their bank to the various importers. The a....