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2018 (10) TMI 214 - AT - Service TaxImposition of penalty - Reverse Charge Mechanism - Banking and other Financial Services - appellants held a bona fide belief that provider of the service i.e. SWIFT, since situated outside India and the recipients of service were also situated outside India, the services provided by SWIFT, would not be taxable in India. Held that:- It is not in dispute that the appellants have paid the entire amount of Service Tax for the services received from the overseas provider of services i.e. SWIFT during the relevant period and liable to discharge Service Tax under reverse charge mechanism. The applicability of Service Tax under reverse charge mechanism though has been introduced by insertion of Section 66A of the Finance Act, 1994, but ultimately the issue is settled by the Hon'ble Supreme Court in Indian National Ship Owners Association case [2009 (12) TMI 850 - SUPREME COURT OF INDIA] - Thus, there is sufficient cause for not discharging Service Tax by the appellant during the period in dispute. Penalty set aside by invoking section 80 - demand of Service tax with Interest upheld - appeal allowed in part.
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