Service Tax not payable on Interest Charged as Upfront Fee

DLF Cyber City Developers Limited Vs CST (CESTAT Chandigarh)

The sole issue is to be decided by us is that the Offshore Upfront Fee paid by the respondent is an interest or a fee.

We find that if it is an interest then service tax is not payable by the appellant in terms of the Circular No. F.No. B2/8/2004-TRU dt. 10.09.2004 wherein interest on loan is not the part of taxable value. We have gone through the facts of the case and the respondent has produced a letter from the Standard Charte

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