Order Date – 05 June 2024

Parties: GRP Limited Vs Commissioner of Central Excise & ST, Bharuch

Facts –

• The Appellant, GRP Limited, was issued with a show cause notice proposing to demand of Service Tax on the ground that the assessee is liable for making payment of Service Tax on the foreign bank charges.
• The demand was confirmed. The appellant preferred appeal.

Issue –

• Whether the assessee is liable for making payment of Service Tax on the foreign bank charges?

Order –

• The Tribunal observed that the appellant had no dealing or contract or agreement with the foreign bank. The appellant have received the proceed from foreign buyer and while remitting payment by the foreign bank to Indian bank, certain banking charges were deducted. 
• Since the dealing of banking activity is strictly between the foreign bank and Indian bank, at the most, any taxable service involve, it is between the foreign bank and the Indian bank and Indian bank is liable to pay service tax. As per the submission of the appellant, the Indian bank has discharged service tax and collected from the appellant.
• In view of the judgment in Raymond Limited vs. CCE and the facts of the present case, the issue is no longer res-integra. Accordingly, the demand in the present case is not sustainable hence, the impugned order is set-aside, appeal is allowed.