2016 (3) TMI 1103

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..... before the higher judicial forum. Interest liability arises and correctly discharged by the appellant. As regards penalty, appellant having discharged the entire service tax liability and the interest thereof before issuance of the show cause notice which would mean that the provisions of Section 73(3) of the Finance Act, 1994 would apply in its full force, which mandates for non-issuance of .....

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..... charges to M/s International Finance Corporation and M/s Clifford Chance US in connection with the ECB raised by them from various financiers. It is the case of the Revenue that the services received by the appellant are taxable under reverse charge mechanism for the period post 18/04/2006. The adjudicating authority after following due process of law recorded that the appellant having not discha .....

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..... the records we find that the appellant had not contested the service tax liability and the interest thereof before the adjudicating authority. Accordingly, we uphold the confirmation of service tax liability under the baking and other financial services under reverse charge mechanism for the amounts paid by the appellant to foreign entity who had rendered services for raising ECB. 6. As regar .....

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..... d as the credit of the duty paid is admissible as cenvat credit. In the case in hand, we find that the appellant has already discharged service tax liability and interest thereof and has not contested interest liability before the lower authorities. In the absence of any contest before the lower authorities on the interest liability the same cannot be contested before the higher judicial forum. Ac .....

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..... erest thereof is discharged. In the case in hand, the issue of taxability of amounts paid for raising of external commercial borrowings (ECB) was contested and there being a difference of opinion, the appellant had made out a case for invoking the provisions of Section 80 of the Finance Act, 1994 for setting aside the penalties as having made out a justifiable cause for invoking the said provisio .....

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