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2023 (7) TMI 262 - AT - Service TaxLevy of Service Tax - Banking and other Finance Services - Foreign Bank charges, charged by Foreign to Indian Bank and the Indian bank collected as reimbursement from the appellant - HELD THAT:- In this fact, it is clear that if at all there is a service provider and Service recipient relationship, it is between the Foreign Bank and Indian Bank. Accordingly in India the actual service recipient is Indian Bank for liable to pay the Service Tax under reverse charge mechanism in terms of Section 66A of the Finance Act, 1994. Therefore in any case the service tax demand cannot be raised from the appellant being not covered under category of service recipient. This issue in the appellant’s own case has been considered by this Tribunal in DISHMAN PHARMACEUTICALS & CHEMICALS LTD VERSUS C.S.T. -SERVICE TAX - AHMEDABAD [2022 (12) TMI 1146 - CESTAT AHMEDABAD] wherein this Tribunal held that when the assessee is not directly making the payment to the Foreign Banker towards any service provided by the said Foreign Banker to the Indian Bank, the assessee is not liable to pay service tax. Thus, it can be seen that the issue is no longer res-Integra. Accordingly, following the above decision, the demand in the present case is not sustainable - appeal allowed.
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