CESTAT Quashes Service Tax Demand on foreign Bank Charges

SKM Egg Products Export (India) Limited Vs Commissioner of Central Excise & Service Tax (CESTAT Chennai) The case revolved around whether the amount deducted by foreign banks towards bank charges was taxable under “Banking and other Financial Services” for the fiscal year 2011-12. The CESTAT noted that the same issue had already been settled in favor of the appellant in a previous case and concurred with the same conclusion. The tribunal recognized that the service was essentially rendered to the State Bank of India (SBI), with which the appellant dealt directly, not the foreig...