2025 (6) TMI 184

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....ers of egg yolk powder and albumen powder. It was noticed on scrutinizing the records that the appellants did not receive the export proceeds in full and their foreign bankers have deducted some amounts towards the service they rendered. It appeared to the Revenue that the appellants have received service classifiable under 'Banking and Other Financial Service' and have not paid appropriate service tax on reverse charge mechanism, in terms of Rule 2(1)(d)(i)(G) and Rule 6 of Service Tax Rules, 1994. Hence, Show Cause Notice dated 21.4.2015, demanding a service tax amount of Rs.1,38,016/- along with interest and penalty, was issued to the appellant. The demand raised in the Show Cause Notice was confirmed by the Assistant Commissioner vide O....

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....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 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. v.....