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2017 (3) TMI 120 - AT - Service TaxServices received from foreign entities - Section 66A of FA, 1994 - reverse charge mechanism - appellants engaged M/s Baker Bott of U.S.A. in connection with extension project of their LNG terminal - Held that: - the law firm engaged by the appellant rendered service including advisory, legal opinion, documents and correspondence, reviewing etc. All these are in the field of contract law - the appellants received mainly legal consultancy service and not management or business consultant service. The finding of the Original Authority that the said legal firm did not represent the appellant in any Court or legal proceeding and, hence, the service is not legal consultancy, is fallacious. Transaction with International Financial Corporation (IFC) - whether liable to tax? - Held that: - the appellants have approached IFC for a loan arrangement and in connection with the same expenditures were incurred by them directly with IFC and also with third party appointed by IFC for due diligence. We note that the IFC Act 1958 clearly provides for immunity of all transactions and operations of IFC. Apparently transaction will involve another person with IFC - there is no separate exemptions required as the transaction of IFC were made immune to tax in terms of IFC Act. Appeal allowed - decided in favor of appellants.
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