The Chennai bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) quashed the order of demand of service tax on the ground of earlier settlements of the same issue.
SKM Egg Products Export (India) Limited, the appellant assessee was the manufacturer of Whole Egg Powder, Egg Yolk Powder, and Albumen Powder and export them to various countries the assessee while receiving the export proceeds, had received a lesser amount than what was due to them from the foreign banks.
The assessee appealed against the order passed by the Commissioner for demanding the service tax on bank charges and for the imposition of a penalty.
Manne Veera Niveditha, the counsel for the assessee contended that the issue involved was no more res integra as the same was settled in favor of the assessee in the assessee’s case.
N. Satyanarayanan, the counsel for the revenue department relied on the decisions made by the lower authorities and contended that the demand of service tax on bank charges was as per the law and liable to be sustained.
The bench observed that the very same issue had been settled in favor of the assessee in its case in Service Tax Appeal and the demand raised by the revenue was liable to be deleted. The two-member bench comprising P.Dinesha (Judicial) and Ajith Kumar (Technical) quashed the order passed by the department while also the appeal filed by the assessee.
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