Calcutta HC Dismisses Revenue’s Service Tax Appeal on Ground of Low Tax Effect, Leaves Questions of Law Open [Read Order]
Despite the substantial 327-day delay in submitting the appeal, the Court used its discretion to excuse the delay but eventually decided not to consider it because of the low tax effect
Calcutta HC Dismisses Revenue’s Service Tax Appeal
Calcutta HC Dismisses Revenue’s Service Tax Appeal
The Calcutta High Court has dismissed Service Tax appeal filed by the Commissioner of Service Tax citing the appeal’s low tax effect.
The Division Bench, comprising Chief Justice T.S. Sivagnanam and Justice Chaitali Chatterjee (Das), clarified that while the appeal could not proceed on monetary grounds, the substantial questions of law raised by the revenue were left open to be examined in appropriate future cases.
The appeal, filed under Section 83 of the Finance Act, 1994, challenged an order passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Eastern Zonal Bench, Kolkata, which had set aside a substantial demand for service tax, education cess, and penalties.
The revenue had requested the High Court to examine whether service tax amounting to over ₹1.12 crore, along with cess, interest, and penalties, could be recovered under various provisions of the Finance Act, 1994, alleging suppression of facts and failure to register for the ‘Business AuxiliaryService’.
However, the respondent’s counsel objected, arguing that the appeal could not be entertained as the total tax effect fell below the monetary threshold prescribed by the Central Board of Indirect Taxes and Customs (CBIC) for pursuing appeals before the High Court.
Despite the substantial 327-day delay in submitting the appeal, the Court used its discretion to excuse the delay but eventually decided not to consider it because of the low tax effect.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
