Artifacts India Vs Commissioner of Central Excise (Appeals) (CESTAT Delhi)
CESTAT Delhi held that bank charges paid to foreign bank is not taxable in India under Reverse Charge Mechanism as the said services has been provided outside the taxable territory and hence outside the purview of section 66B for levy of service tax.
Facts- The appellant is a proprietorship concern and is engaged in the manufacturing of various paper products, including paper boxes, bags, and gift sets, as well as handicraft items. The Appellant is registered as a 100% EOU. During the period 01.04.2007 to 31.03.2012, the Appellant had exported goods manufactured by him and had received consideration in foreign currency from buyers. As the Appellant was exclusively engaged in the export of goods, therefore the appellant had not sought registration under service tax.
A show cause notice dated October 17, 2012, was issued to the appellant proposing a service tax demand of Rs. 10,09,952/-, which was subsequently adjudicated by the Additional Commissioner vide Order-in-Original dated August 30, 2013. Vide the said order, the demand for Rs.1,67,895/- was dropped on account of computational errors and the balance demand for Rs.8,42,057/- was confirmed along with interest u/s. 75 and penalties u/s. 77 and 78 of the Act.
