JSW STEEL LTD. SALEM WORKS Vs. CCE (ST)

JUDGEMENT

(1.) HEARD both sides.

(2.) THE appellants, M/s. JSW Steels Ltd. took a loan of US 30 million from a Consortium of Financiers arranged by ICICI Bank. The appellants had paid the loan processing fee to ICICI Bank. The ICICI Bank paid the service tax under the Banking and Financial Institution Service and recovered the same from the appellants. These transactions took place following an agreement between the appellants and the ICICI Bank dated 18.9.2006. The JSW Steel Ltd. paid an arrangement fee of US 1.2 million to ICICI Bank Though the loan arrangement fee was paid to ICICI Bank in September 2006 the appellants paid the service tax due on the same at the instance of the Department on 31.5.2007, before issue of show -cause notice. After due process of law, the impugned order was passed wherein the Commissioner demanded service tax of Rs. 67,62,355/ - towards the loan arrangement fee paid by M/s. JSW Steel Ltd. to ICICI Bank. This amount was appropriated by the Commissioner as per the impugned order. The appellants are liable to pay penalties imposed by the Commissioner under different sections of the Finance Act, 1994 including a penalty of Rs. 67,62,355/ - imposed under Section 78 of the Finance Act. The applicable interest for the belated payment of the tax demanded also remains to be paid by the appellants. Considering the fact that the appellants have paid the service tax amount of Rs. 67,62,355/ - promptly before the issue of show -cause notice by the Department we waive the predeposit and stay recovery of the remaining dues as per the impugned order till the final disposal of the appeal.