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2023 (3) TMI 1384 - AT - Service TaxLevy of service tax - Banking and other Financial Service - amount which was deducted by the Foreign bank towards the bank charges for the year 2006-2007 to 2010-2011 - reverse charge mechanism - invocation of extended period - imposition of penalties - HELD 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 M/S. THEME EXPORTS PVT. LTD. VERSUS C.S.T., DELHI [2018 (5) TMI 825 - CESTAT NEW DELHI], by relying on the ratio laid down by the Tribunal in the case of M/S DILEEP INDUSTRIES PVT. LTD. VERSUS CCE, JAIPUR [2017 (10) TMI 1231 - CESTAT NEW DELHI], where the Tribunal held while exporting their goods, they lodged their bills for collection to the Indian Bankers who in turn send the same to the foreign banks. The foreign banks while remitting the money to the Indian Bank, deduct their charges for collection of bills which in turn are charged by the Indian Banks from the appellants. When it is so, then the appellant are not entitled to pay the service tax. Extended period of limitation - penalties - HELD THAT:- As the issue is resolved on merits, there is no need to discuss about invocability of extended period in this case and also regarding legality of imposition of penalties. Appeal allowed.
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