2018 (8) TMI 1175

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....er ( Judicial ) Shri. R. Chelladurai, Consultant for the Appellant Shri. S. Govindarajan, AC (AR) for the Respondent ORDER Per Bench The facts of the present appeal are that proceedings were initiated against appellant on the allegation that they were liable to pay service tax on the charges paid to the Overseas banks on Nostro and Vostro accounts and SWIFT Charges for the period 01....

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....helladurai draws our attention to an earlier decision of CESTAT Chennai in an identical issue in the case of The Karur Vysya Bank Ltd. Vs. C.C.E. & S.T., Tiruchirappalli (Final Order No. 41525/2018 dt. 15.05.2018) wherein, inter alia, the penalties imposed have been set aside. 3. The Ld. AR Shri. S. Govindarajan supports the findings in the impugned Order. However, he agrees to the fact of the ....

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....well as SWIFT, the appellants believed that these are not taxable under Banking and Financial services. The department has sought to levy the service tax in these accounts under reverse charge mechanism and the issue whether the assessee is liable to pay service tax under reverse charge mechanism was under confusion until the law was settled by the case rendered in Indian National Ship Owners' Ass....

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....ch litigation and was settled by the decision rendered in the case of Indian National Ship Owners' Association (supra). This Tribunal in the case of Indian Overseas Bank Vs CST, Chennai, F.O.No.40920/18 dt.2.3.2018 has considered the very same issue and set aside the penalties, observing that the issue is interpretational in nature. Following the same, we are of the considered opinion that there b....