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2012 (11) TMI 528 - AT - Service TaxFees paid to Mandated Lead Arrangers (MLAs) - Service tax demand with interest thereon & penalty u/s 76 & 78 - Held that:- The Service Tax liability in the case has been fastened on the appellant under section 66A under the Reverse Charge Mechanism which came into force w.e.f. 18.4.2006. Therefore, for the period prior to 18.4.2006, the provisions of Section 66A will have not any application and out of demand of Rs, 8,05,24,006/- an amount of ₹ 2,79,08,777/- pertains to the period prior to 18.4.2006 and this demand is obviously not sustainable. Assessee not put on notice - Held that:- In the SCN it has been clearly mentioned that the arrangement fees, agency fees, commitment fees or other fees are required to be paid under course of providing the above services for raising funds/loan on behalf of M/s Tata Steel Ltd. SCN also stated that on going through the agreements for providing loan or fund, it is found that different foreign institutions have been providing different service to M/s TATA in relation to the availment of loans or raising funds on behalf of M/s TATA. The above service provided by them is classifiable under Banking and other Financial services and taxable under clause (zm) of Section 65(105). Thus it prima facie appears that the appellants have been put to notice with regard to the activity undertaken by them and also linking the activity undertaken by them with Service Tax law provisions. The rationale for classification of the service under ‘Banking and Financial Services' has been clearly spelled out. The appellant had not made out a prima facie case for complete waiver of pre-deposit thus directed to make a pre-deposit of ₹ 1 crore towards dues adjudged within a period of eight weeks from order date - against assessee.
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