2022 (11) TMI 752

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....nds through External Commercial Borrowings (ECB) and Foreign Currency Convertible Bonds (FCCB). In the course of raising funds i.e. foreign borrowings, the appellant had received services from the service providers based outside India. Revenue is of the view that the amount paid by the appellant to said foreign service provides is liable to be taxed under reverse charge mechanism for service tax under 'banking and other financial services'. The show cause notice was adjudicated after following due process of law, the demands were confirmed along with interest and penalty has been imposed vide impugned order. Therefore the present appeal. 3. When the matter was called, none appeared for the appellant. 4. Shri R P Parekh, learned Superinten....

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....ellant is that penalty is not imposable as the Service Tax demand along with interest was paid before the issue of show cause notice. Such matter cannot be taken as evasion of service tax, the matter is revenue neutral as the Cenvat credit of service tax is always admissible and it is a fit case, for invocation of Section 80 of the Finance Act, 1994. In this connection appellant also placed reliance on the decisions of Essar Steel Ltd. vs. CCE Surat -I- 2009 (13) STR 579 (Tri. Ahmd). We find that it is evident from the records that the appellant discharged the service tax liability along with interest thereon as soon as they came to know about the liability of service tax in this matter and they also paid the same much before the show cause....