2017 (3) TMI 120

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....erent companies situated Abroad for receiving scientific, professional, consultancy and technical services for their project. On verification of the accounts and documents of the appellant, the Revenue entertained a view that the appellants did not discharge service tax on various services received by them from foreign entities under reverse charge mechanism in terms of Section 66A of Finance Act, 1994. Accordingly, proceedings were initiated which resulted in the confirmation of service tax of Rs. 32,69,277/-. Penalty of equivalent amount under Section 78 and Rs. 5,000/- under Section 77 of the Finance Act, 1994 were also imposed on the appellant. 2. The learned Counsel for the appellant submitted that the service tax demand against the a....

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....and privilege from taxation in respect of transactions with IFC. Section 3 of the said Act read with Section 9 will make it clear that the operations and transactions authorized by the agreement shall be immune from taxation and custom duties. The learned Counsel submitted that the Original Authority erred in holding that the exemption is only available to IFC and not to the person dealing with IFC. 4.  The learned AR reiterated the findings of the lower authority. He submitted that the immunity given to IFC from taxation cannot be extended to the appellant who had transaction with IFC. 5.  We have heard both the sides and perused appeal records. On the first issue, we find that the appellants engaged M/s Baker Bott of U.S.A. in....