TaxTMI 
TaxTMI 
2024 (2) TMI 83
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....Tax under "banking and other financial services" under Section 65(12) read with Section 65(105)(zm) of the Finance Act, 1994 under reverse charge mechanism. 2.1 Brief facts, as could be gathered from the impugned order are that during the course of scrutiny of accounts of the appellant by the Officers of the Central Excise Department, it was noticed that the appellant had paid bank charges to Banks located in foreign countries for realization of export proceeds and other financial services, but had failed to (i) pay Service Tax of Rs.6,20,682/- on the above charges in respect of "banking and other financial services", (ii) failed to take Registration Certificate and (iii) failed to file the statutory S.T.-3 Returns during the period from....
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....are for inter-bank transactions and the Indian Banks are to be considered as service recipients for the purpose of payment of Service Tax and not the Indian exporter. He stated that the C.B.E.C. vide its Circular No. 163/14/2012-ST dated 10.07.2012 has clarified that there is no service under such transactions. 5. Per contra, the Ld. Deputy Commissioner has stated that since the services provided by the foreign banks are covered under banking and financial services who do not have an office of establishment in India, the assessee being the service recipient is liable to pay the appropriate Service Tax. 6. After hearing both sides, we find that the main issue that arises for our consideration is: whether the amount deducted by the fore....
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....t sale proceeds to their bank namely SBI, which in turn has used the services of the foreign bank for collection of export sale proceeds. Obviously, the foreign banks who have rendered their services, have deducted their charges while remitting the export sale proceeds to SBI. The appellant has never dealt with the foreign bank on his own and the Banking and Other Financial Service if at all was rendered only to SBI. Amount charged by the foreign bank while remitting export sale proceeds, whether can be subjected to service tax or not has been decided by the CESTAT Principal Bench, New Delhi in the case of Theme Exports Pvt. Ltd. Vs. CST, Delhi (supra), by relying on the ratio laid down by the Tribunal in the case of M/s. Dileep Industries ....
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.... ING Vyasa Bank who had paid the charges to the foreign bank. In view of this, the appellant cannot be treated as service recipient and no service tax can be charged under Section 66A read with Rule 2 (1)(2)(iv) of the Service Tax Rules, 1994. Moreover, we also find that in appellants own case for the previous period similar order had been passed by the original adjudicating authority and on appeal being filed against the same, the Commissioner (Appeals), vide his order in appeal dated 12.11.08 has set aside that order and as per the appellant's counsel, no appeal has been filed against that order. In view of this, the impugned order is not sustainable, the same is set aside and appeal is allowed"." 5. By following our earlier deci....