2026 (1) TMI 784

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....appeal and upheld the OIO No.01/2016 dated 19-012016. 2. The relevant facts are that the Appellant are manufacturers and exporters of whole egg powder, egg yolk powder and albumen powder. The Appellant had received export proceeds of amounts only after deduction of bank charges by the foreign banks and it appeared to the Department that such deductions were towards services classifiable as "Banking and Other Financial Services" being rendered by such banks on which the appellant was required to pay service tax in terms of Section 66A of the Finance Act, 1994 read with Rule 2(1)(d)(i)(G) and Rule 6 of the Service Tax Rules, 1994. The Statement of Demand issued in the present case resulted in the Adjudicating Authority confirming a demand ....

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....riod are exigible to service tax under "Banking and Other Financial Service" on which the appellant was required to pay service tax in terms of Section 66A of the Finance Act, 1994 read with Rule 2(1)(d)(i)(G) and Rule 6 of the Service Tax Rules, 1994. 7. We find that it is undisputed that it is the State Bank of India who has been engaged by the appellant and is paying service tax for its services on the bill raised. There is no evidence let in of the appellant having engaged the foreign bank or having any dealings directly with the foreign bank so as to consider the appellant to have received any services from the foreign bank. In fact, the adjudicator has merely stated that he is not expected to go into the merits of the subject deman....

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.... 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 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 ha....