9911796707
TMI Blog2012 (6) TMI 723X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2. The facts of the case are that the appellant has borrowed funds under the scheme of External Commercial Borrowing (ECB) from various foreign lenders including International Finance Corporation (IFC) and Asian Development Bank (ADB) to augment fund requirement for its upcoming UMPP at Mundra. In respect of the loans taken from ADB and IFC apart from the payment of interest, the appellant also made certain other payments i.e commitment charges, up-front fee, arrangement fee, agency fee and out of pocket expenses to the lenders. As per the provisions of section 68 of the Finance Act, 1994 in relation to the payments made towards commitment charges, up-front fee, arrangement fee, agency fee and out of pocket expenses paid to ADB and IFC, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deal with issue of ADB/IFC Act. It is further contended that the ADB/IFC has been made by the Indian Parliament and limited to Indian territory as the service has been availed by the appellant outside India, therefore, as per the provisions of section 66A of the Finance Act, the appellants are liable to pay service tax on reverse charge mechanism. Therefore, the appellant be asked to make pre-deposit of the entire amount of service tax confirmed against them. 6. Heard both sides. 7. As per Article 56 of the Schedule to the ADB Act, the bank, its assets, property, income and its operations and transactions shall be exempt from all taxation and from all customs duties. The Bank shall also be exempt from any obligation for the payment, with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in section 65 of the said Act provided by any person, to the United Nations or an International Organisation from the whole of the service tax leviable under section 66 of the said Act and "International Organisation' means an international organization declared by the Central Government in pursuance of section 3 of the United Nations (Privileges and Immunities) Act, 1947. 8. We have seen that the power to levy service tax admittedly arises under entry 97 & 92 of List 1, Seventh Schedule of the Constitution of India read with Article 246. Article 246 forms part of Chapter 1, Part XI of the Constitution. This Chapter deals with Legislative Relations - Distribution of Legislative Powers. However, Article 253 (which forms part of the aforemen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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