2008 (8) TMI 275 - AT - Service Tax

Import of services - Whether service tax is liable to be paid by the appellant for the services rendered by the foreign banks in relation to export transactions -Appellant, exporter avails services of the bank to realise the sale proceeds from the foreign buyers - Banking and other financial services appellant submits that there is no contract/agreement between the applicant and the foreign bank and in fact they do not know identity of the foreign banks. Therefore, to presume that they are receiving services from the foreign bank may not be correct - prima facie, case in favour of appellant stay granted

Summary

The Appellate Tribunal CESTAT NEW DELHI ruled in favor of the appellant, an exporter, regarding the liability of service tax for services rendered by foreign banks in export transactions. The tribunal waived the pre-deposit of dues and stayed recovery until the appeal is disposed of.