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2017 (3) TMI 180 - AT - Service TaxClassification of taxable services - Banking and other financial services - mobilization of funds in foreign exchange by issuing convertible bonds by using the services of foreign Merchant Banks - reverse charge mechanism - Held that: - underwriting commission constitutes 99%. The finding of the original authority that in composite contract the essential nature of the contract will decide the obligation of service. This principle has not been appropriately applied to the facts of the present case. When 99% of the commission is towards underwriting services, remaining 1% commission will not determine the essential nature of commission service - reliance was placed on the decision of Tribunal in the case of Jubilant Life Sciences Ltd. vs. CCE Noida [2013 (5) TMI 393 - CESTAT NEW DELHI] where identical set of facts were examined and the Tribunal held that said services of underwriting cannot be taxed under Banking and Financial Services - appeal allowed - decided in favor of appellant.
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