Fox Mandal And Company Vs Commissioner of Central Excise (CESTAT Allahabad)
The appeal before the CESTAT Allahabad challenged Order-in-Original dated 20.12.2018 passed by the Principal Commissioner, CGST, Noida. The order confirmed multiple demands against the appellant, a law firm providing legal services and registered for taxable services including renting of immovable property, rent-a-cab service, and legal consultancy. The adjudicating authority confirmed irregular availment and utilization of CENVAT credit of ₹89,63,694 with interest and imposed an equal penalty. It also confirmed service tax demand of ₹2,99,38,158 out of a proposed ₹6,00,94,195, along with interest and penalty of an equivalent amount. A late fee of ₹95,900 was imposed for delayed filing of ST-3 returns for 2010-11 to 2014-15.
The dispute arose after an audit conducted in March 2014 identified several discrepancies. These included alleged non-payment of service tax on certain transactions, irregular CENVAT credit claims, incorrect treatment of export of services, differences between figures in ST-3 returns and financial statements, liability under reverse charge, and other expenses such as legal and car hire charges. The department invoked the extended limitation period on the ground that these issues were discovered only during audit and involved suppression of facts.
Before the Tribunal, the appellant contested demands relating to denial of CENVAT credit, service tax on export of services, reconciliation differences between ST-3 returns and financial statements, and sponsorship services. The appellant did not dispute late filing fees or admitted liabilities and stated that the amount of ₹18,19,544 relating to admitted service tax liability had already been deposited.
