𝗖𝗘𝗦𝗧𝗔𝗧 𝗔𝗵𝗺𝗲𝗱𝗮𝗯𝗮𝗱 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗟𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗳𝗼𝗿 𝗕𝗮𝗻𝗸𝗶𝗻𝗴 𝗖𝗵𝗮𝗿𝗴𝗲𝘀 📢 The bench of CESTAT Ahmedabad stated,

For the liability of Service Tax on banking charges deducted by foreign banks, it is the Indian bank that is liable, not the assessee.

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: GRP Limited 𝗜𝘀𝘀𝘂𝗲: Whether GRP Limited is liable to pay Service Tax on foreign bank charges.

𝗣𝗿𝗼𝗰𝗲𝗲𝗱𝗶𝗻𝗴𝘀: GRP Limited received a show cause notice demanding Service Tax on foreign bank charges. The Assessing Officer confirmed the demand, but GRP Limited appealed.

⚖️ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Tribunal observed that GRP Limited had no direct dealing or contract with the foreign bank. The liability for Service Tax lies with the Indian bank, not GRP Limited. The demand was deemed unsustainable, and the appeal was allowed on June 5, 2024.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: GRP Limited vs. Commissioner of Central Excise & ST, Bharuch 𝗖𝗮𝘀𝗲 𝗡𝗼: SERVICE TAX Appeal No. 11709 of 2016-DB

📜 This ruling clarifies that Service Tax liability for foreign banking charges falls on the Indian bank involved, not the recipient company. #CESTAT #ServiceTax #LegalUpdate #BankingCharges