2014 (1) TMI 200

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..... commercial borrowings for setting up a unit in Special Economic Zone. It is also undisputed that the said external commercial borrowings could not be raised and arrangement had to be cancelled and the appellant has received the amount back from the agency to whom they had given advance. Be that as it may, we find that Notification No. 4/2004-S.T. specifically discuss about the exemption of taxabl .....

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..... bove said amounts have been confirmed as liability to service tax under the reverse charge mechanism on the appellant, on the ground that the appellant has made arrangement for the external commercial borrowings. It is the contention of the Revenue that the said service would fall under the category of Banking and Financial services. 3. Learned advocate would take us through the order-in-origina .....

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..... ey had given advance. Be that as it may, we find that Notification No. 4/2004-S.T. specifically discuss about the exemption of taxable service of any description to a developer of Special Economic Zone or any unit in any Special Economic Zone for consumption of the services within such Special Economic Zone. It is undisputed that external commercial borrowing was for the purpose of developing a un .....

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