Faiveley Transport Rail Technologies (I) Ltd Vs Commissioner of GST and Central Excise (CESTAT Chennai)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, heard an appeal against Order-in-Appeal dated 09.05.2017, which had upheld Order-in-Original dated 20.07.2016 confirming service tax demand of Rs. 16,36,718 along with interest and equal penalty under the Finance Act, 1994 for the period 2010-11 to 2011-12.
The appellant was engaged in manufacturing activities and provision of services including maintenance and consultancy. During the relevant period, the appellant rendered services to South Western Railway and also provided services as a sub-contractor under a contract involving its foreign affiliate in connection with the Delhi Airport Metro Express Ltd. (DAMEL) project. The appellant claimed exemption under Notification No. 24/2009-ST for services rendered to South Western Railway and treated the DAMEL-related services as export of services because invoices were raised in foreign currency and consideration was received in convertible foreign exchange. A show cause notice dated 17.04.2015 proposed service tax demand, interest, and penalty, which were confirmed by the adjudicating authority and partly upheld by the Commissioner (Appeals).
The Tribunal framed two principal issues for determination: eligibility to exemption under Notification No. 24/2009-ST and export of services treatment, and whether the demand was sustainable on limitation and penalty.
