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TMI Blog2020 (6) TMI 418X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Moreover, the demand raised in the show cause notices are on the basis of assumption and presumption presuming that their associates have received the loan facilities from the financial institution at lower rate, therefore, the differential amount of interest is consideration, but there is no such evidence produced by the revenue on that behalf. The appellant is not liable to pay any service tax on corporate guarantee provided by the appellant to various banks/financial institutions on behalf of their holding company/associate enterprises for their loan or over draft fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... During the course of Audit, it was found that the appellant-assessee has provided corporate guarantee to various banks/ financial institutions on behalf of their holding companies/Associate enterprises/ Joint Venture and Other loan facilities. The Revenue alleges that the such activity is taxable under Banking and Finance Institution Services whereas the appellant is contesting that they are not liable to pay service tax on the said activity as they have not received any consideration for providing corporate guarantee to various banks on behalf of their associates. Further, the appellant has also collected certain charges on account of prime location of the flats and other relevant charges from the flat owners but did not pay service tax, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding company/associate enterprises for their loan or over draft facility under Banking and Financial Institutions after or before 01.07.2012. 5. In view of this, we set-aside the impugned order qua demand of service tax on corporate guarantee provided by the appellant. We further take note of the fact that for the charges leviable on account of prime location charges etc., the appellant has already paid service tax along with interest before issuance of the show cause notice. Therefore, we hold that in terms of Section 73(3) of the act, the proceedings were not required to be initiated against the appellant, therefore, penalty imposed on the appellant is set aside. Accordingly, the impugned order is set aside, the appeal is allowed with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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