TMI Blog2019 (2) TMI 867X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Finance Act, 1994 and held that it is a taxable activity - the demand raised in respect of SWIFT transactions requires to interference. Penalty - Held that:- Taking note of the fact that the issue is interpretational, we are of the considered opinion that the appellant has given reasonable cause for not paying service tax on SWIFT transactions - penalty set aside. Appeal allowed in part. - Appeal Nos.: ST/42816 & 42817/2014 - Final Order Nos. 40201-40202/2019 - Dated:- 31-1-2019 - Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Ms. S. Bharkavi, Advocate for the Appellant Shri. A. Cletus, ADC (AR) for the Respondent ORDER Per Bench : The issue involved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exchange authenticated structured messages between Member Banks which are located worldwide. Banks can thus exchange authenticated messages with any Member of SWIFT with whom it has a Relationship Management Application (RMA). For establishing the RMA, SWIFT charges a nominal fee. Apart from annual charges, banks also need to pay monthly traffic charges to SWIFT which depends on the number of outgoing messages and the type of message sent by them during a particular month. 3.2 She submitted that the issue whether Vostro and SWIFT transactions are subject to levy of service tax was considered by the Tribunal in the appellant s own case vide decision reported in 2018-TIOL-2863-CESTAT MAD. She submitted that the Tribunal had held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time and litigations were pending before the Tribunal as well as various High Courts. Taking note of the fact that the issue is interpretational, we are of the considered opinion that the appellant has given reasonable cause for not paying service tax on SWIFT transactions. Therefore, we find that it is a fit case for invoking Section 80 of the Finance Act, 1994 and also to set aside the penalties imposed with respect to SWIFT transactions. So ordered. 9. From the discussions made hereinabove : (i) The demand of service tax with respect to Vostro transactions is entirely set aside; (ii) The demand of service tax with respect to SWIFT transactions is upheld along with interest; however, the penalties on this ground are set aside ent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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