CESTAT Sets Aside Service Tax Demand as Exporter Was Not Recipient of Foreign Bank Services

Advertisement Lingeswara Creation Vs Commissioner of Central Excise And Service Tax (CESTAT Chennai) The appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai arose from an order rejecting the appellant’s challenge against service tax demand under the reverse charge mechanism in relation to charges deducted by foreign banks from export sale proceeds. The appellant was engaged in manufacture and export of knitted garments. During verification of records, the department noticed that export proceeds received by the appellant in its Indian Bank account were re...