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2018 (9) TMI 503 - AT - Service TaxBanking and Other Financial services - reverse charge mechanism - Section 66A of the Finance Act, 1994 read with Rule 2 (1)(4) of Service Tax Rules, 1994, and read with Rule 3 of Taxation of Services (provided from outside and received in India) Rules 2006 - appellant assessee have availed services of certain foreign based agencies for receiving external foreign commercial borrowings (ECB) from abroad - Time Limitation. Held that:- As per the provisions of Section 66A of the Finance Act, 1994 read with Rule 3 of Taxation of Services (provided from Outside India and received in India) Rules, 2006, the recipient of services needs to discharge their service tax liability as if such services have been performed in India. It is categorically been provided that even if a part of borrowings have been used abroad for the business purposes, the facts remain that recipient of services is based in India and therefore, as per the provisions Section 66A of Finance Act, 1994 read with relevant rules, the appellant assessee should have discharged their service tax liability in India, on the amount of commission paid by them as the value of services received by them from abroad - Thus, the appellant-assessee are legally liable to pay service tax on the service of foreign institutions availed in getting their ECBs. Time Limitation - Held that:- Since the noticee is already registered with the Central Excise department and is also regularly filing his Excise and Service tax returns, they cannot plead ignorance about the provisions of reverse charge mechanism for payment of service tax on the services received from abroad - even when the assessee has become aware that in July, 2007 itself that there may be certain legal issues regarding service tax liability on the services availed by them from abroad, however, we find that they have not stirred themselves to final take certain conclusive steps, in making compliance of service tax law - the extended time proviso under Section 73(1) of Finance Act, 1994 rightly invoked. Appeal dismissed - decided against appellant.
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