TMI Blog2018 (4) TMI 728X X X X Extracts X X X X X X X X Extracts X X X X ..... at the IFC Act 1958 clearly provides for immunity of all transactions and operations of IFC - tax liability do not sustain. Penalty - Held that: - the disputed amount was paid immediately after the notice and the same was appropriated in the impugned order - penalty not sustainable. Appeal allowed. - 53524 of 2014 - ST/A/50855/2018 - Dated:- 27-2-2018 - MR. JUSTICE (DR.) SATISH CHANDRA, P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... they discharged the said Service Tax and separately followed the issue with the Department for claiming refund available to SEZ. The assessee - Appellants are not contesting the tax liability of the said amount. An amount of ₹ 1,31,525/ -, as Service Tax liability, is related to finance mobilized through foreign assistance. However, the learned counsel submitted that the said liability cann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e relating to tax liability of the appellant on their transaction with IFC, we note 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. App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mptions required as the transaction of IFC were made immune to tax in terms of IFC Act. 4. In view of the above, we find that the said tax liability is not sustainable against the assessee - Appellants. 5. Regarding the penalty imposed on the assessee - Appellants, we note that the Service Tax liability is with reference to the finance arrangement for development of SEZ where the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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