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TMI Blog2012 (11) TMI 211X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1994 as taxable services of Underwriter's Services and Merchant Banker' Services - applicant is therefore directed to deposit an amount of Rs. 50,00,000/- (Rupees fifty lakhs only) within a period of eight weeks and report compliance later on. On compliance there shall be stay of recovery of the balance amount of service tax, interest and penalty till disposal of the appeal. - ST/314/2012-Mum - S/1153/2012/CSTB/C-I - Dated:- 3-9-2012 - S S Kang And Sahab Singh, JJ. Appellant Rep by: Shri Abhijit Saha, Consultant Respondent Rep by: Shri S G Dewalwar, Additional Commissioner (AR.) Per: Sahab Singh: This is an application filed by M/s. UTI Bank Limited (now known as M/s. AXIS Bank Limited) seeking waiver of pre-depos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proposing the penalty on the applicant. The show cause notice was confirmed by the Commissioner who imposed equal amount of penalty under Section 78 of the Finance Act, and also imposed penalty of Rs. 5,000/- under Section 77 of the Finance Act. The applicant has filed this appeal along with the stay application before this Tribunal. 3. The learned Consultant appearing for the applicant submitted that service tax appearing for the applicant submitted that service tax amount has been confirmed against them under Merchant Banking Services' whereas the non-resident service providers have provided underwriter service which is taxable only if performed in India. In this case the services were performed totally outside India and hence do not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able underwriter service and not as merchant banking service which is covered under SEBI (Merchant Bankers) Regulations, 1992 and SEBI (Merchants Bankers) Regulations, 1992. Therefore, the two services are different services and not the same. Once a service falls under a specific category for classification of Finance Act, such specific category has to be applied which in the present case is the Underwriting Service'. He further contended the service in question is not merchant banking service but as underwriters service and in case of underwriter services they are not required to pay any service tax. In support of his contention, he also referred the Board Circular dt. 9 th July 2001. He therefore submitted that the applicant has a strong ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Excise, Noida reported in 2012 (25) S.T.R. 469 (Tri. Del.) in which in similar facts of the case the pre-deposit was ordered by the Tribunal. 5. After hearing both sides, we find that the issue involved in the appeal is regarding the taxability of the taxable service as merchant banking service as contended by the Revenue or as underwriter service as argued by the applicant. Records of the case revealed that applicant has offered issue of Global Depository Receipts in July 2007 for which they have appointed non-residents to act as Joint Bank runners and Joint Lead Managers with conditions agreed between them. As per agreement non residents will be entitled to withhold from the proceeds of the transaction a commission out of the gros ..... X X X X Extracts X X X X X X X X Extracts X X X X
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