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TMI Blog2023 (3) TMI 1384X X X X Extracts X X X X X X X X Extracts X X X X ..... le proceeds to SBI. The appellant has never dealt with the foreign bank on his own and the Banking and Other Financial Service if at all was rendered only to SBI. Amount charged by the foreign bank while remitting export sale proceeds, whether can be subjected to service tax or not has been decided by the CESTAT Principal Bench, New Delhi in the case of M/S. THEME EXPORTS PVT. LTD. VERSUS C.S.T., DELHI [ 2018 (5) TMI 825 - CESTAT NEW DELHI] , by relying on the ratio laid down by the Tribunal in the case of M/S DILEEP INDUSTRIES PVT. LTD. VERSUS CCE, JAIPUR [ 2017 (10) TMI 1231 - CESTAT NEW DELHI] , where the Tribunal held while exporting their goods, they lodged their bills for collection to the Indian Bankers who in turn send the same to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... realization of export sale proceeds from the foreign buyers. The entire demand was computed on the basis of the statement of the appellants of the foreign bank charges paid for the year 2006-2007 to 2010-2011. The Revenue demanded service tax under the Banking and other Financial Service on Reverse Charge basis on these Foreign Bank charges borne by the appellants. 2.1 In the grounds of appeal, the appellants contended that the State Bank of India through whom they have realized the export proceeds charged service tax on total invoice value before deducting foreign bank charges. Further, they submitted that buyer bank is not providing any service to them directly and hence the provisions of Section 66 A of the Finance Act, 1994, are n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice for the period 2006-2007 to 2010-2011? The other issues involved are whether invocation of extended period and imposition of penalties are sustainable in the facts of the case? 5.2 We find that the appellants have submitted the documents for realization of export sale proceeds to their bank namely SBI, which in turn has used the services of the foreign bank for collection of export sale proceeds. Obviously, the foreign banks who have rendered their services, have deducted their charges while remitting the export sale proceeds to SBI. The appellant has never dealt with the foreign bank on his own and the Banking and Other Financial Service if at all was rendered only to SBI. Amount charged by the foreign bank while remitting export s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 03.01.2014) where it was observed that- 4. We find that no documents have been produced showing that foreign bank has charged any amount from the appellant directly. The facts as narrated in the impugned order clearly indicate that it is the ING Vyasa Bank who had paid the charges to the foreign bank. In view of this, the appellant cannot be treated as service recipient and no service tax can be charged under Section 66A read with Rule 2 (1)(2)(iv) of the Service Tax Rules, 1994. Moreover, we also find that in appellants own case for the previous period similar order had been passed by the original adjudicating authority and on appeal being filed against the same, the Commissioner (Appeals), vide his order in appeal dated 12.11.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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