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2023 (8) TMI 1149 - AT - Service TaxNon-payment of service tax - amount deducted by foreign banks being bank charges - Banking and Other Financial Service or not - period from 1.4.2007 to 31.5.2012 - HELD THAT:- Section 65(105)(zm) of the Finance Act, 1994 falls under Rule 3(iii) of Taxation of Services (Provided from Outside India and Received in India) Rules, 2006. To attract this provision, services must be received in India. In the instant case, no services are received in India. Therefore, it is not a taxable service. A similar matter came to be decided by a co-ordinate Bench of this Tribunal in the case of M/S. SKM EGG PRODUCTS EXPORT (I) LTD. VERSUS THE COMMISSIONER OF CENTRAL EXCISE (APPEALS) , ANNAI MEDU SALEM. [2023 (3) TMI 1384 - CESTAT CHENNAI], where relying in the case of M/S. THEME EXPORTS PVT. LTD. VERSUS C.S.T., DELHI [2018 (5) TMI 825 - CESTAT NEW DELHI] it was held that The foreign banks while remitting the money to the Indian Bank, deduct their charges for collection of bills which in turn are charged by the Indian Banks from the appellants. When it is so, then the appellant are not entitled to pay the service tax. The matter is squarely covered by the judgment - appeal allowed.
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