Service Tax Not Applicable on Forex Profit: Refund Denial on Limitation Rejected by Madras HC

State Bank of India Vs Deputy Commissioner (Madras High Court) The appeal before the Madras High Court arose from an order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, which had dismissed the assessee’s appeal. The appellant, a nationalised bank, had paid service tax amounting to ₹20,23,916 on the basis of instructions issued by the audit team of the Central Excise and Service Tax Department. The audit team had taken the view that the share of profit earned in foreign exchange transactions constituted a taxable service. Acting on this advice, the appellant r...