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2015 (4) TMI 129 - AT - Service TaxBusiness Support Services - nature of receipt - repayment of loan or advance towards services to be rendered - whether the sum of ₹ 1,493/- crores received by the appellant from RCM is an advance for the taxable services rendered or to be rendered by the appellant to M/s. RCM or is it a loan by way of Inter Corporate Deposits given to the appellant - Held that:- On details scrutiny of the balance sheets produced by the learned Counsel for appellant, we find that accounts of the appellant as well as RCM do not indicate any co-relation in the repayment of the loan and receipt of the service charges by the appellant. The emphasis of the Revenue that the agreement between the appellant and RCM very clearly indicates that an amount of ₹ 283/- crores was to be adjusted against the service charges would also not carry the case of the Revenue any further as the appellant as well as RCM being a public limited companies, have clearly indicated in their balance sheets that the amounts have been shown as received and loans repaid. - provisions of Section 67 of the Finance Act, 1994 refers to gross service charges paid or payable for the services rendered or to be rendered has to be read as it is. In our view, the entire sum of ₹ 1,493/- crores does not qualify as an advance towards the services to be rendered by the appellant to RCM. - Decided in favour of assessee.
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