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TMI Blog2019 (9) TMI 1123X X X X Extracts X X X X X X X X Extracts X X X X ..... hrough the said letter, we hold that the said amount on which the service tax is being demanded and Upfront Fee is nothing but an interest and on interest, no service tax is payable by the respondent, therefore, the respondent is not liable to pay service tax on the said amount. Decided in favor of assessee. - Appeal No. ST/60753/2017 Application No. ST/MISC/60106/2019 With Appeal No. ST/60758/2017 And Appeal No. ST/60857/2017 - ORDER No. A/60660-60662/2019 - Dated:- 22-5-2019 - Mr. ASHOK JINDAL, MEMBER (JUDICIAL) AND Mr. BIJAY KUMAR, MEMBER (TECHNICAL) For The Appellant : Shri Atul Handa, Shri Vijay Gupta, ARs For The Respondent : Shri P. K. Mittal Advocate ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t-assessee to demand service tax on corporate guarantee provided by the appellant-assessee to various financial institutions on behalf of their holding company/associate enterprises. The matters were adjudicated and the demand of service tax was confirmed. Against the said order, the appellant-assessee is before us. 2. Heard the parties. 3. It is an admitted fact that the appellant-assessee has not received any consideration from either from the financial institutions or from their associates for providing corporate guarantee, in that circumstances, no service tax is payable by the appellant-assessee. Moreover, the demand raised in the show cause notices are on the basis of assumption an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the Offshore lender does not provide any service and upfront fee is nothing but the element of cost of capital provided by the Offshore Lenders to the Respondent. In the impugned order, the said demand has been dropped by the Ld. Commissioner, but, revenue filed appeal against the said order on the ground that it is not a fee but interest paid by the respondent, therefore, on the said amount, they are liable to pay service tax. 6. Heard the parties. 7. The sole issue is to be decided by us is that the Offshore Upfront Fee paid by the respondent is an interest or a fee. We find that if it is an interest then service tax is not payable by the appellant in terms of the Circular No. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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