9911796707
TMI Blog2016 (1) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant paid the service tax on 18.12.2007 whereas the show cause notice was issued on 11.08.2008 and adjudicated on 18.08.2011. The prompt payment of service tax even before the issue of show cause notice shows the genuineness of the appellant. It is a case of bonafide belief of the appellant that service tax was not payable. Even the interest was paid soon after the passing of the adjudicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellant availed external commercial borrowings (ECB) in the form of convertible foreign currency bonds in April 2005 and April 2006 and raised capital in overseas market in the form of Global Depository Receipts (GDR). To raise funds for their activities, the appellant availed merchant banking services from Citigroup Global Markets Ltd (Citigroup) and J.P. Morgan Securities Ltd based abroad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of Services (provided from outside India and received in India) Rules 2006. The Commissioner in the impugned order, confirmed the demand for ₹ 2,33,94,233 under Section 73 (1) and also imposed penalties under sections 76 and 77 as well as equivalent penalty under Section 78 of the Finance Act. 3. The appellant paid the entire amount of service tax, albeit under protest, before the issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot payable as the funds were raised abroad, the entities who had provided the service of raising of funds were located abroad, the service was consumed outside India as the funds were raised outside India through the issue of ECB and GDR. The second contention is that, in any case, the service tax paid by them would be available as Cenvat credit which they have availed. Therefore she prays for wai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een available to them as Cenvat credit and non payment would not result in any financial benefit. Therefore, in our considered view, the case deserves waiver of penalty under section 80 of the Finance Act and we order so. 6. In view of the above, we uphold the impugned order to the extent of confirmation of service tax demand and the interest thereon. Appellant's appeal is partly allowed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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