2023 (3) TMI 1384

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... During the verification of their records, it was noticed from the Foreign inward remittance statement/Bank realization statement that lesser amounts were received when compared to the export bill amounts due to deduction of Foreign bank charges for realization of export sale proceeds. The lesser amounts paid were on account of the bank charges paid to the foreign bank for the services rendered by them in realization of export sale proceeds from the foreign buyers. The entire demand was computed on the basis of the statement of the appellants of the foreign bank charges paid for the year 2006-2007 to 2010-2011. The Revenue demanded service tax under the "Banking and other Financial Service" on Reverse Charge basis on these Foreign Bank cha....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....terest and imposition of penalties in this appeal. 3. Learned AR Shri M. Ambe has reiterated the reasoning and findings given in the impugned order. 4. We have heard both sides and perused the records. 5.1 The main issue involved in this case is whether the amount which was deducted by the Foreign bank towards the bank charges are taxable under the service "Banking and other Financial Service" for the period 2006-2007 to 2010-2011? The other issues involved are whether invocation of extended period and imposition of penalties are sustainable in the facts of the case? 5.2 We find that the appellants have submitted the documents for realization of export sale proceeds to their bank namely SBI, which in turn has used the services of the fo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nks. The foreign banks while remitting the money to the Indian Bank, deduct their charges for collection of bills which in turn are charged by the Indian Banks from the appellants. When it is so, then the appellant are not entitled to pay the service tax. The identical issue has come up before the Tribunal in the case of Greenply Industries Ltd. vs. CCE, Jaipur (Final Order No. 50149/2014 dated 03.01.2014) where it was observed that- "4. We find that no documents have been produced showing that foreign bank has charged any amount from the appellant directly. The facts as narrated in the impugned order clearly indicate that it is the ING Vyasa Bank who had paid the charges to the foreign bank. In view of this, the appellant cannot be treat....