2010 (8) TMI 222

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..... d received payment for the same from Suzuki Motor Corporation, Japan - there was to be an export of services by Bank of Tokyo, New Delhi Branch then, the service tax paid is refundable without reference to unjust enrichment - Appeal is allowed
Shri M. Veeraiyan, Member (T) REPRESENTED BY : Shri Gajendra Maheshwari and Ms. Shreya Tripathi, C.A., for the Appellant. Shri R.K. Verma, DR, for the Respondent. [Order (Oral)]. - This is an appeal against the order of the Commissioner (Appeals) No. 102/ST/DLH/2009 dated 31-12-2009. 2. Heard both sides extensively. 3.1 The relevant facts, in brief, are that Suzuki Motor Corporation, Japan intended to transfer funds to M/s. Suzuki Motor Cycle India Pvt. Ltd. in India. Suzuki Moto .....

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..... e fund transfer was between Suzuki Motor Corporation, Japan and Suzuki Motor Cycle India Pvt. Ltd., New Delhi which took place through Bank of Tokyo. The Bank of Tokyo has different branches in different countries including the one in India. The Bank of Tokyo, Japan and Bank of Tokyo, New Delhi are just branches of the same legal entity. The question of Bank of Tokyo, New Delhi branch rendering any taxable services to the Tokyo branch does not arise. If it is treated as service, it is only self service as the organisation remains the same. The debit entries made in the note having been cancelled, there is not even notional service charges received by New Delhi Branch of Bank of Tokyo. Entries relating to service tax has also been reversed a .....

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..... t they are located in two different countries. Fund transfer was conducted through Bank of Tokyo between Suzuki Motors Corporation, Japan and Suzuki Motor Cycles India Pvt. Ltd., New Delhi and the two Branches of the same Bank have played their respective roles. The Department's contention is that the Bank of Tokyo New Delhi Branch has rendered services to Tokyo Branch of Bank of Tokyo, Japan. Notwithstanding any adjustment by way of credit note and debit note, it is not possible to come to the conclusion that one branch of same legal entity renders services to another branch of same legal entity which can attract service tax. There are no transactions involving two different legal entities in the transaction between Bank of Tokyo, New Delh .....

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