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2018 (6) TMI 788 - AT - Service TaxBanking and Financial Services - Failure to pay Service Tax - fees paid to the overseas service provider - Reverse Charge Mechanism - SCN issued by invoking Extended period of limitation - sub-section (3) of section 73 of FA - Held that:- The assessee had failed to pay the service tax only due to the bonafide belief that M/s. ICICI Hong Kong being a financial institution functioning overseas and belonging to ICICI based in India, and the overseas bank not being of foreign origin, the provision of section 66A are not applicable. That therefore they are not liable to pay service tax under reverse charge mechanism - the provisions of section 66A(2) of the Act provides that in case of permanent establishment in India and permanent establishment in a country other than India, such permanent establishments should be treated as separate persons for the purpose of the said Section. Therefore, on being pointed out, the assessee has discharged their service tax liability. Penalty rightly set aside - appeal dismissed.
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