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2023 (6) TMI 241 - AT - Service TaxLevy of Service tax - Banking and Other Financial Services or not - fees paid to foreign banks for the External Commercial borrowings under the Reverse Charge mechanism - HELD THAT:- In the show cause notice, it is alleged that such banks and financial institutions do not have an office or permanent establishment in India. The respondent has given detailed break up of the demand raised in SCN as well as the table in the grounds of appeal. The table which is reproduced in para 7 above will demonstrate that such financial institutions have a permanent establishment in India. Some amounts relate to the period prior to 18.04.2006 which is before the introduction of Section 66A of the Finance Act, 1994 and therefore not taxable under reverse charge mechanism. From the details furnished by the Ld. Counsel in the synopsis it is found that department has failed to adduce any evidence that the figures of Rs.51,75, 733/- is subject to service tax and these banks and financial institutions do not have permanent establishment in India. In the result, we do not find any grounds to interfere with the impugned order passed by the original authority. Impugned order is sustained. Appeal filed by department is dismissed.
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