Case Law Details
Commissioner Of Tax , GSTVs. M/s Indian Railway Finance Corporation (Delhi High Court)
Having heard counsel for the appellant, we are not inclined to interfere with the impugned order, which records and affirms on the bona fide conduct of the respondent- assessee, M/s. Indian Railway Finance Corporation.
2. The respondent-Corporation, a Government of India Corporation, was established with an objective to raise money from the market to part finance the planned outlay and finance capital expenditure for expansion, development and modernization of Indian Railways. The respondent-Corporation in turn raises funds in the form of taxable and tax free bonds, term loans from banks/ financial institutions and through offshore borrowings.
3. For overseas borrowing, the respondent-Corporation had paid arrangement fee, annual agency fee, upfront fee, underwriting fee etc. to several non-resident financial institutions.
4. As per the case set up by the appellant, reverse charge principle was applicable on the said charges and the respondent-Corporation was liable to pay service tax on the aforesaid services under clause (12), Section 65 of Chapter-V of the Finance Act, 1994.
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