Service Tax - Axis Bank Appeal Dismissed by CESTAT for Non Compliance
THE short facts were that the applicant had availed the services of Non-Resident service providers, who did not have offices in India and they had paid certain fees/charges to such non-resident service providers for facilitating issue of Global Depository Shares (GDS). Revenue took a view that the service is taxable and classifiable under the category of Banking and Other Financial Services as Merchant Banking Services and the person liable for payment of service tax is the person receiving the taxable service in India.
The Show Cause Notice demanding Service Tax of Rs.1.67 Crores dt. 13.1.2009 was confirmed by the CST, Mumbai-I along with equivalent penalty and interest.
The CESTAT had while deciding the Stay petition adverted to the decision in Jubilant Life Sciences Ltd. (2012-TIOL-199-CESTAT-DEL) and directed the applicant to deposit an amount of Rs. 50,00,000/- (Rupees fifty lakhs only) within a period of eight weeks and report compliance on 3 rd December, 2012."
We had reported this case on 30th October 2012. ().
The case was called for hearing on 3rd December, 2012 by the CESTAT, WZB at Mumbai (2012-TIOL-1878-CESTAT-MUM).
Since there was no compliance reported by the appellant, the Bench dismissed the appeal.