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2019 (10) TMI 414

..... o indicate that M/s. SWIFT is a Banking company but as its name appears, it handles transmission of financial and other telecommunication net working for the Banks. The allegation against appellant in the show cause is found to be use of service of transmission of financial and other related messages. In common parlance, “transfer of data” and “transmission of messages” could be different from each other but as SWIFT charges has been held to be taxable in various judgements, judicial precedent dictates that the same principal is to be respected for all times to come unless over-ruled by a larger Bench or Appellate Forum. Taxability on SWIFT charges, which has been accepted by the appellant who also discharged duty li .....

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..... dustrywide enquiry on levy of service tax on SWIFT charges paid by the Banks of India on reverse charge basis and issued letter date 29-2-2009 to the appellant in that connection. Unlike other Banking institutions, appellant decided not to dispute the service tax liability and made prompt payment of service tax of ₹ 25,47,642/- along with interest of ₹ 4,57,974/- for the period between 2006-09 and informed DGCEI regarding such payment but SCN dated 29-1-2010 was received by the appellant for recovery of equivalent penalty of ₹ 25,47,642/- under section 78 and penalty under section 77 of the Finance Act 2004. The matter was adjudicated upon. On receipt of reply to show cause, matter was adjudicated upon, such duty demand al .....

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..... Further argument raised by the Learned Counsel for appellant is on non-application of provision of section 73(4) of the Finance Act when prompt payment of service tax with interest was made, upon the same being pointed out by the Investigating Agency such as DGCEI that would cover appellant under section 73(3) proviso for which he prayed to set aside the order passed by the Commissioner (Appeals). 4. In response to such submissions, Learned Authorised Representative for respondent Department Mr. Sudhir B. Mane argued in support of the reasoning and rationality found in the order of the Commissioner (Appeals) and in placing reliance on the decision reported in Board of Control for Cricket in India v. Commissioner of Service Tax, Mumbai-I [20 .....

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..... d to be use of service of transmission of financial and other related messages. In common parlance, transfer of data and transmission of messages could be different from each other but as SWIFT charges has been held to be taxable in the above referred judgements, judicial precedent dictates that the same principal is to be respected for all times to come unless over-ruled by a larger Bench or Appellate Forum. Therefore, taxability on SWIFT charges, which has been accepted by the appellant who also discharged duty liability, is to be excluded from the purview of this discussion. However, having regard to the fact that taxability on SWIFT charges and application of reverse charge mechanism during the relevant period was in hegemony, impositio .....

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