2023 (12) TMI 1008

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of sales proceeds from the foreign buyers the appellant avails services of the Banks situated in India i.e HDFC Bank in the instant case. After the goods are exported, the copy of documents relating to export is handed over to HDFC Banks for collection of the amount from the overseas Banks. The overseas Banks has deducted certain Bank charges from the export realization of the appellant's export of goods while remitting the export proceeds to the Indian Bank of the appellant. The case of the department is that on the amount deducted by the Foreign Bank is liable to Service Tax in the hand of the appellant under the BAS under reverse charge mechanism on the ground that the Indian Bank has deducted the same amount from the total proceed while....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.....S.T- Service Tax-Ahmedabad-2022 (12) TMI 1146-CESTAT AHMEDABAD M/s. Kadri Mills (CBE) Ltd- 2023 (8) 1149-CESTAT CHENNAI 2.1 Without prejudice to the above, he further submits that the demand on impugned charges has been made under the category of BAS. The activity is clearly classifiable under Banking and other Financial service. Therefore, the demand raised under BAS is liable to be set aside on this ground alone. He placed reliance on the following judgments: Dr. Lal Path Lab Pvt. Ltd-2006 (4) STR 527 (Tri-Del.) Dr. Lal Path Lab Pvt. Ltd-2007 (8) STR 337 (P & H) Federation Indian Chambers of Commerce And Industries- 2015 (38) STR 529 (Tri-Delhi) 2.2 He further submits that entire exercise of dema....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lso placed reliance on the following judgments: State Bank of Bikaner and Jaipur-2022 (57) GSTL J65 (SC) 4. We have carefully considered the submissions made by both the sides and perused the records. We find that in the present case undisputed fact is that the bank charges deducted by the Foreign Bank while remitting the export proceed received from the Foreign Country to the exporters Indian Bank was demanded Service Tax. We find that there is no contract or understanding between appellant and the Foreign Bank. The appellant being exporter of goods is exclusively dealing with Indian Bank i.e HDFC Bank of the appellant. In such case if any charge is collected by the Indian Bank from the appellant the said activity would be liab....