Service tax under RCM not leviable for bank charges paid by Indian Bank to Foreign Bank

Dishman Pharmaceuticals & Chemicals Ltd Vs C.S.T.-Service Tax – Ahmedabad (CESTAT Ahmedabad) CESTAT Ahmedabad held that as appellant is not a service recipient, service tax cannot be demanded from the appellant under reverse charge mechanism (RCM) in case of bank charges paid by Indian Bank to Foreign Bank and reimbursed from the appellant. Facts- The issue involved in the present case is that whether, the Foreign Bank charges, charged by Foreign to Indian Bank and the Indian bank collected as reimbursement from the appellant is liable to be taxed under the category of Banking and ot...