TMI Blog2015 (11) TMI 471X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the category of banking and other financial service and taxable as per the provisions of Section 66A of the Finance Act, 1994, in hands of the appellant. To that extent, we uphold the service tax liability and interest thereof. Extended period of limitation and levy of penalty - held that:- appellant is having a good case on the revenue neutrality, inasmuch any service tax paid by them under reverse charge mechanism is eligible as Cenvat credit as the external commercial borrowings are for the purpose of business activity of the appellant. Keeping this in mind, we find that the appellant had made out a case for non-imposition of penalty; invoking the provisions of Section 80 of the Finance Act, 1994, we set aside the penalties imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot discharge the service tax liability is the allegation of the Revenue. Both the lower authorities confirmed demands and interest and imposed penalties. 4. Learned Counsel would submit that they are not in challenge against the service tax liability payable under reverse charge mechanism for the amount remitted by them in respect of arrangement fees, underwriting fees and agency fees. It is his submission that in fact they have already discharged their service tax liability and interest thereof and they are only contesting imposition of penalties on these amounts of service tax confirmed. Their main challenge, according to the Counsel is in respect of service tax liability on legal fees and out of pocket expenses, which according to him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raised the external commercial borrowings in form of external commercial borrowings as to fee of arrangement and underwriting fee plus agency fee is undisputedly taxable under the category of banking and other financial service and taxable as per the provisions of Section 66A of the Finance Act, 1994, in hands of the appellant. To that extent, we uphold the service tax liability and interest thereof. 6.3 As regards the penalty imposed under various sections, we find that on this amount, the appellant is having a good case on the revenue neutrality, inasmuch any service tax paid by them under reverse charge mechanism is eligible as Cenvat credit as the external commercial borrowings are for the purpose of business activity of the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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