The Supreme Court of India issued notice to file counter affidavit in the matter regarding service tax demand on Konkan Railways.
Confirmation of duty demand along with interest and penalty for the extended period made through two show cause notices on the appellant company, an unit constituted by the Indian Railways and four of the State Governments, vide above referred order, on the ground that it was providing business support service taxable under the Finance Act, 1994, is assailed in the appeal before the Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) .
A Two-Member Bench of the CESTAT observed that “This being facts on record and law on the subject that appears to be completely different from the demand raised in the show cause notice and confirmed by the Commissioner, it would be out of context to discuss about the extended period, computed since 2009 apart from the fact that Indian Railways is given exemption from payment of service tax for the prior period up to 1.10.2012. Therefore, we conclude this discussion by holding that confirmation of demand by the Commissioner is unsustainable, for which the order passed by the Commissioner is required to be set aside.”
The SLP arose out of the impugned final judgment and order dated 22-06-2023 in STA No. 87709/2019 passed by the Custom Excise Service Tax Appellate Tribunal, West Zonal Bench at Mumbai.
A Two Judge Bench comprising Justice BV Nagarathna and Justice Manoj Misra observed that “Delay condoned. Issue notice to the respondent. Mr. Abhishek Vikas, Adv. for the respondent accepts notice. Four weeks’ time is granted to file counter-affidavit.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
