9911796707
TMI Blog2024 (6) TMI 304X X X X Extracts X X X X X X X X Extracts X X X X ..... thereby, it was concluded that such service falls under the category business auxiliary services and the service tax was required to be paid under reverse charge mechanism. The said audit objection was communicated vide letter dated 28.01.2009 and in response to the same, the appellant had submitted reply dated 29.05.2009 & 09.04.2010. Thereafter, ashow cause notice dated 21.09.2011 was issued proposing to demand of Service Tax on the ground that the assessee is liable for making payment of Service Tax on the foreign bank charges. 2. The said demand was confirmed vide order-in-original dated 31.05.2015. The appellant preferred appeal before the Commissioner (Appeals), however, the same was rejected hence, the present appeal is filed. 3. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We have carefully considered the submissions made by both the sides and perused the record. We find that the service tax was demanded by the department on the bank charges debited by the foreign bank. As per the fact, the appellant had no dealing or contract or agreement with the foreign bank. The appellant have received the proceed from foreign buyer and while remitting payment by the foreign bank to Indian bank, certain banking charges were deducted. Since the dealing of banking activity is strictly between the foreign bank and Indian bank, at the most, any taxable service involve, it is between the foreign bank and the Indian bank and Indian bank is liable to pay service tax. As per the submission of the appellant, the Indian bank has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... both the parties and on perusal of record, it appears that the first issue is pertaining to the collection charges of the Indian bankers who in turn send the same to the appellant for collection to the foreign bankers. The department has demanded Rs. 2,37,087/- from the appellant. From the record, it appears that while exporting their goods, they lodged their bills for collection to the Indian Bankers who in turn send the same to the foreign banks. The foreign banks while remitting the money to the Indian Bank, deduct their charges for collection of bills which in turn are charged by the Indian Banks from the appellants. When it is so, then the appellant are not entitled to pay the service tax. The identical issue has come up [before] the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal passed the following order:- "The appellants are exporters. They receive the export proceeds through ING Vyasa Bank. The foreign bank through which the payment had given channelised charged some amount from the appellant's bank ING Vyasa Bank which in turn recovered the same from the appellant. The department demanded Service Tax on the amount which the foreign bank charged from ING Vyasa Banker which, in turn, was recovered from the appellant. On this basis, Service Tax demand of Rs. 96,392/- was confirmed against the appellant along with interest and penalties were imposed under Sections 76 and 78. This order of the Asstt. Commissioner was upheld by Commissioner (Appeals) vide order-in-appeal dated 17-4-2008 against which thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... find that in Appellant's own case for the previous period similar order had been passed by the original adjudicating authority and on appeal being filed against the same, the Commissioner (Appeals), vide order-in-appeal dated 12-11-2008 has set aside that order and as per the appellant's counsel, no appeal has been filed against that order. In view of this, the impugned order is not sustainable. The same is set aside and the appeal is allowed."
5. In view of the above judgments and the facts of the present case, the issue is no longer res-integra. Accordingly, the demand in the present case is not sustainable hence, the impugned order is set-aside, appeal is allowed.
( Pronounced in the open court on 05. 06. 2024 ) X X X X Extracts X X X X X X X X Extracts X X X X
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