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2016 (4) TMI 628 - AT - Service TaxService tax liability - External commercial borrowings (ECB) are raised in the form of foreign currency convertible bonds - Amount paid by the appellant to M/s Jefferies International Ltd. for the services rendered for raising ECB for the appellant - Held that:- in view of majority of decisions held in the case of Tata Steel Limited vs. Commissioner of Service Tax, Mumbai -I [2015 (11) TMI 1049 - CESTAT MUMBAI (LB)], service tax liability under reverse charge mechanism arises on the person making the payment for the services rendered by an intermediary who helps in raising the ECB. Therefore, the service tax liability arise on the appellant in respect of the amounts paid to M/s Jefferies International Ltd. for raising the ECB. Imposition of interest - Held that:- Since the amount of service tax liability gets fastened, consequential interest liability also arise on the appellant. Accordingly,the appellant is liable to pay interest on such amount of service tax liability. Imposition of penalty - Held that:- appellant has not paid the entire amount of the service tax liability and the interest thereof but has only paid 50% of the amount of service tax liability. It is found that the provisions of Section 80 cannot be invoked, as there being no discharge of service tax liability and interest thereof and the penalty imposed on the appellant needs to be upheld as there is no justifiable reason or cause shown for setting aside the penalties. - Decided against the appellant
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