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TMI Blog2024 (5) TMI 327X X X X Extracts X X X X X X X X Extracts X X X X ..... d 'corporate guarantee' from their Overseas Holding Company, M/s. Air Liquide International, France 'ALI' during the period 2010-2015. On the basis of audit, show cause notice dated 19.04.2016 was issued to the respondent demanding service tax on 'corporate guarantee' received from 'ALI' under Reverse Charge Mechanism (RCM) under 'Banking Financial Services' prior to 1.7.2012 (Section 66A of the Act read with Rule 2(1)(d)(iv) of the Service Tax Rules, 1994) and 'taxable service' from 1.7.2012 (Section 66B of the Act read with Rule 68 (2) of the Act and Rule 2(1)(d)(G) of Service Tax Rules. On adjudication, demand of Rs.48,06,721/- for the period April, 2010 to June, 2012 was dropped on the ground that no consideration has been paid by the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observing that this was the case where the assessee had got no consideration while providing any corporate guarantee to its group companies. 4. Learned Counsel for the appellant has also referred to the other decisions of the co-ordinate Benches of the Tribunal in Principal Commissioner of Central Tax, New Delhi Vs. Sindhu Trade Linkers - 2023 (11) TMI 890 -CESTAT-New Delhi, Sowar Pvt. Ltd. Vs. Commissioner of Service Tax, Delhi-II - (2023) 7 Centax 84 (Tribunal-Delhi), DLF Cyber City Developers Ltd. Vs. CST, Delhi-IV -2019 (28)GSTL 478 (Tri.-Chan.) and The Commissioner, Central Excise & Service Tax, Delhi Vs. Pharmax Corporation Ltd. - 2024 (3) TMI 1179-CESTAT, New Delhi. 5. There has been a consistent finding in all the decisions that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the consideration received is zero any percentage will be zero itself. This issue has been settled in the series of decisions which have been correctly relied upon by the Commissioner (Appeals) while setting aside the order of the Additional Commissioner. 10. We have gone through the two case laws relied upon by the learned authorized representative. It is being explicitly recorded in Kaveri Agricare that the "demand is on account of consideration received by the appellant for providing the above corporate guarantee during the material period". Similarly, in the case of Olam Agro it is recorded "a show cause notice dated 03.04.2012 was issued covering the period October 2010 to 31.12.2011 proposing levy of service tax, interest and penal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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