2017 (9) TMI 1558

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....ide India in the form of External Commercial Borrowings, in connection with the same, availed services from service providers located outside India. They were issued show cause notice demanding service tax on the amount paid by the Appellant as fee/ charges to service providers under the category of  Banking & Financial Services . 3. The adjudicating authority confirmed the demand of Service Tax against the Appellant, imposed penalties and demanded interest on the confirmed demand. Being aggrieved, the Appellant have filed the present appeal. 4. Shri L Badrinarayan, Ld. Counsel for the Appellant, on merit, submits that the services were rendered and received outside India, hence they are not liable to pay service tax. The service....

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....se of M/s Tata Steel Limited on the very merit, vide order dt. 05.06.2015 was referred the matter to the Larger Bench as both the members had difference of opinion. That they are registered under Service Tax and paying service tax to the tune of Rs. 467 Crores annually. They had furnished all information to the department as and when asked for, hence there was no suppression on the part of the appellant. 4.2 He submitted that since the demand itself is not sustainable and also being issue involved is of Interpretational in nature hence no penalty and interest is payable. 5. Shri Roopam Kapoor, Ld. Commissioner (AR) appearing on behalf of the revenue, submits that the issue on merit already stands decided by Tribunal in case of M/s Tat....

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.... if any available, as per law. 6. Heard both sides and perused the records. We find that the issue on merits of service tax payment in respect of services relating to External Commercial Borrowings stands decided by the Tribunal in case of Tata Steel supra, therefore the Appellant was undoubtedly liable for payment of service tax. We however found that the Appellant have raised the issue on revenue neutrality as well as the time bar. With reference to issue of revenue neutral, we find that the said defence was not taken by the Appellant before the lower authorities so that this aspect cannot be ascertained. It is submitted by the Appellant that whatever Service Tax was payable by them, was available as Cenvat credit to them and theref....