In-house corporate guarantee not liable to service tax

Sterlite Industries India Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai)

CESTAT Chennai has held that commission received/paid for issuance of corporate guarantee to associate/subsidiary companies is not exigible to service tax under Section 65(12)(a)(ix) of Finance Act, 1994. The Tribunal observed that corporate guarantee is not same as bank guarantee since corporate guarantee is an in-house guarantee issued to safeguard financial health of associate enterprises and is not issued to customers generally. I

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