Supreme Court Dismisses Fox Mandal's Appeal In ₹3.89 Crore Service Tax Case
The Supreme Court recently (March 25) dismissed an appeal filed by Fox Mandal and Company against the Commissioner of Central Goods and Service Tax, Noida, declining to interfere with the CESTAT order, which upheld service tax and CENVAT-related demands aggregating to about Rs. 3.89 crore.
While refusing to interfere with the CESTAT judgment dated December 11, 2024, which had upheld substantial service tax demands and remanded certain issues for reconsideration, a bench of Justices Pamidighantam Sri Narasimha and Alok Aradhe held that no error of law or fact was made out.
The court observed:
“Having heard learned counsel appearing for the appellant, we are of the opinion that the Customs, Excise and Service Tax Appellate Tribunal has not committed any error in law or fact in passing the order impugned.”
The dispute arose from an Order in Original dated December 20, 2018, passed by the Principal Commissioner, CGST, Noida, confirming demands arising from alleged irregular availment of CENVAT credit and non-payment of service tax for the period 2010-2011 to 2014-2015. The total confirmed liability, including service tax and CENVAT credit, aggregated to about Rs. 3.89 crore.
The department alleged that the law firm had availed CENVAT credit of Rs. 89.63 lakh without producing prescribed documents, failed to substantiate export of services claims, and suppressed taxable value in its ST-3 returns.
The CESTAT upheld denial of CENVAT credit on the ground that photocopies of invoices are not valid documents under Rule 9(1) of the CENVAT Credit Rules, 2004. However, the tribunal remanded issues concerning export of services and verification of documents for fresh consideration by the adjudicating authority.
Finding no infirmity in the tribunal's reasoning, the Supreme Court dismissed the appeal and upheld the CESTAT order.
For Appellant: Surjendu Sankar Das, AOR, Advocates Vishwajeet Singh Shekhawat, Yoovika Toor