No Service Tax on Foreign Bank Charges Under RCM: CESTAT Chennai

Annur Cotton Mills Vs Commissioner of GST & Central Excise (CESTAT Chennai) The appeal before the CESTAT Chennai arose from a dispute concerning the levy of service tax under the Reverse Charge Mechanism (RCM) on bank charges recovered by foreign banks in connection with export transactions undertaken by the appellant. The appellant, engaged in activities involving receipt, processing, and return of goods between its units, had initially operated under the 100% Export Oriented Unit (EOU) Scheme until 9 June 2011, after which both units functioned as Domestic Tariff Area (DTA) units followi...