Charges levied by Foreign Bank Not Taxable under Banking & other Financial Services

Kadri Mills (CBE) Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai) Introduction: The Chennai branch of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) recently ruled in favor of Kadri Mills (CBE) Ltd. in its appeal against the Commissioner of GST & Central Excise. The judgment concluded that the amount deducted by foreign banks towards banking charges is not taxable under “Banking and Other Financial Services,” thereby offering significant relief to exporters like Kadri Mills. Case Background: Kadri Mills, an exporter of various textile product...