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TMI Blog2018 (6) TMI 788X X X X Extracts X X X X X X X X Extracts X X X X ..... nafide belief that M/s. ICICI Hong Kong being a financial institution functioning overseas and belonging to ICICI based in India, and the overseas bank not being of foreign origin, the provision of section 66A are not applicable. That therefore they are not liable to pay service tax under reverse charge mechanism - the provisions of section 66A(2) of the Act provides that in case of permanent esta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are disposed by this common order. 2. Brief facts are that the assessee is engaged in manufacture of caustic soda, PVC resin, hydrochloric acid etc. and having registered office at Mumbai. They availed loan to the extent of USD 2,00,00,000 (Rs.78.9 crores approximately) from M/s. ICICI, Hong Kong. On the foreign currency borrowing called External Commercial Borrowings, the assessee has to pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST/505/2010 before the Tribunal. The Department has filed Appeal No.ST/524/2010 against the order of Commissioner (Appeals) who dropped the penalties. The assessee has also filed cross-objection. 2. At the time of hearing, the ld. Counsel Shri C. Seethapathy appearing on behalf of the assessee submitted that the issue whether the assessee is liable to pay service tax on upfront feet, commitmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is liable to pay service tax on the upfront fee, commitment fee, etc. paid to the overseas service provider is settled by the decision in the case of JSW Steels Ltd. (supra). We find that the assessee had paid the entire service tax along with interest on 27.6.2008. The show cause notice has been issued by the department invoking the extended period on 14.8.2008. Sub-section (3) of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s separate persons for the purpose of the said Section. Therefore, on being pointed out, the assessee has discharged their service tax liability. Taking note of these facts as well as the provisions laid in sub-section (3) of section 73, we are of the view that the Commissioner (Appeals) has rightly set aside the penalties imposed by invoking section 80 of the Finance Act. We do not find any groun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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