TMI Blog2020 (7) TMI 320X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue at any stage. Investigation by the officers revealed these facts and on being pointed out the appellant paid the entire amount of service tax along with some interest - decided in favor of Revenue. Time Limitation - Penalty - HELD THAT:- There are no evidence in the particular facts and circumstances of this case that the appellant tried to actively suppress or misstate facts. It is true that they have not paid service tax which they were required to. It is equally true had they paid the service tax they could have immediately taken the CENVAT credit of the entire amount so paid and utilized it. By delaying the payment, the appellant would only be liable to pay interest which also cannot be claimed as CENVAT credit. Thus, by not paying Service Tax, the appellant would have lost something but gained nothing - there is no ground to invoke extended period of limitation. As the entire period of demand is beyond the normal period the same needs to be set aside along with the interest - penalty u/s 78 also set aside. Appeal allowed - decided in favor of appellant. - Service Tax Appeal No. 1325 of 2011 - FINAL ORDER No. A/30908/2020 - Dated:- 6-7-2020 - Mr. ANIL CHOUDAR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services . He would argue that the services rendered by the foreign service providers were in relation to placing of FCCBs in those countries and therefore the services were consumed outside India and hence they cannot be charged to service tax in India. Giving details of the services availed, he would submit that they had paid service charges to their service providers under the heads of Lead Manager Charges and Listing Charges. It is his argument that the Corporate Advisory Services and professional charges can by no stretch of imagination classified as banking and other financial services and also cannot be classified as merchant banker services As per the Stock Exchange Board of India (SEBI) Rules, Merchant Banker refers to any person who is engaged in the business of issue management either by making arrangement regarding buying, selling or subscribing to securities or acting as manager, consultant or referring corporate advisory services in relation to such issue management . The corporate advisory services and professional services were not in relation to the above. 4. With regard to the period of limitation, he would submit that even if they were liable to pay se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nancial company or any other body corporate or [commercial concern]*, namely :- (i) financial leasing services including equipment leasing and hire-purchase; Explanation. -For the purposes of this item, financial leasing means a lease transaction where- (i) contract for lease is entered into between parties for leasing of a specific asset; (ii) such contract is for use and occupation of the asset by the lessee; (iii) the lease payment is calculated so as to cover the full cost of the asset together with the interest charges; and (iv) the lessee is entitled to own, or has the option to own, the asset at the end of the lease period after making the lease payment; (ii) Omitted (iii) merchant banking services; (iv) securities and foreign exchange (forex) broking, and purchase or sale of foreign currency, including money changing; (v) asset management including portfolio management, all forms of fund management, pension fund management, custodial, depository and trust services , (vi) advisory and other auxiliary financial services including investment and portfolio research and advice, advice on mergers and acquisitions and advice on corporate restr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant has suppressed the information from the department which justifies the invocation of extended period of limitation as well as imposition of penalty. He relies on the case law of Paramount Communications Ltd., [2019 (29) GSTL 322 Tri-Delhi] in which a similar case, the Principal Bench of the Tribunal has held that service tax was chargeable under reverse charge mechanism on the services availed for floating FCCBs and commercial borrowings and also upheld the invocation of the extended period of limitation in that case. He would therefore submit that the appeal needs to be dismissed. 10. We have considered the arguments on both sides and perused the records. It is not in dispute that the appellant availed the services from foreign service providers in relation to floating of FCCBs in those countries The nature of services referred by the service providers falls squarely within the definition of merchant banker in terms of the SEBI (MBR 1990).Therefore, in terms of Section 65(12)(a)(iii) the services referred squarely fall under the definition of bank and other financial services. As the recipient of these services, the appellant was required to pay service tax under rev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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