Demand of service tax on foreign remittance quashed by CESTAT

Last updated: 28 September 2021
Quick Summary
The CESTAT has allowed an appeal by Hindustan Zinc Ltd, quashing a demand for service tax on foreign remittances. The tribunal found that the service tax paid by the company on imported services, calculated on a higher value due to exchange rates, already covered the department's proposed demand. Furthermore, the CESTAT noted that at the time of the transactions, there was ambiguity surrounding the reverse charge mechanism for services received from abroad, meaning Hindustan Zinc Ltd had not suppressed facts with intent to evade tax.

Court :
CESTAT, Delhi

Brief :
In M/s Hindustan Zinc Ltd. v. The Commissioner, Central Excise, Udaipur, [FINAL ORDER NO. 51819-51820/2021 dated September 17, 2021], M/s Hindustan Zinc Ltd ("the Appellant")filed the appeal to assail the order passed by the Commissioner, Central Excise, in which the demand notice in view of the provisions of Section 73(3) of the Finance Act,1994 ("the Finance Act") have been issued to the Appellant.

Citation :
FINAL ORDER NO. 51819-51820/2021 dated September 17, 2021

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Bimal Jain
Published in Excise
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