Delhi Cargo Service Centre Private Limited Vs Principal Commissioner of Central Goods And Service Tax (CESTAT Delhi)
The Customs, Excise and Service Tax Appellate Tribunal examined an appeal against an order confirming service tax demand of Rs.2,70,80,797 along with interest and equal penalty under Section 78 of the Finance Act, 1994. The dispute arose from audit objections covering multiple issues including non-reversal of CENVAT credit on exempt supplies, reverse charge liability on rent-a-cab services, admissibility of CENVAT credit on certain services and debit notes, taxability of refund of license fees, and interest on advance receipts.
The department alleged that the appellant was providing both taxable and exempt services, including services to SEZ units, while availing full CENVAT credit without maintaining separate accounts or reversing proportionate credit under Rule 6(3) of the Cenvat Credit Rules, 2004. It was also alleged that service tax under reverse charge had not been paid on rent-a-cab services, inadmissible CENVAT credit had been availed on rent-a-cab, health insurance and guest house-related services, credit had been wrongly availed on debit notes, and credit had been taken on works contract services relating to building and civil structures. Further, the department treated refund of license fees received from Delhi International Airport Private Limited for delayed handover of land as consideration for “tolerating an act” taxable under Section 66E(e). Interest was also demanded on advance receipts on which tax was paid later at the time of invoicing.
