HCL Infosystems Ltd. Vs Principal Commissioner (CESTAT Allahabad)
Summary: M/s HCL Infosystems Ltd. challenged the Order-in-Original dated 27.07.2017 passed by the Commissioner, CGST, Noida, confirming service tax demand of Rs. 22,84,80,700 along with interest and equivalent penalty. The demand arose from a special audit conducted under Section 14AA of the Central Excise Act, 1944 during March 2012, followed by a show cause notice dated 23.10.2015 covering the period July 2010 to June 2015.
The demand comprised Rs. 21,80,617 towards reimbursement of employee operating costs by group companies under Business Support Services (BSS), Rs. 1,74,56,830 towards print services under BSS, Rs. 35,34,408 towards amounts received from Intel Corporation under the alleged Advertising Agency Service, Rs. 1,26,99,502 towards supply of courseware material under Commercial Training & Coaching Services, and Rs. 19,26,09,342 towards Comprehensive Service & Maintenance Contracts (CSMC).
The Appellant contended, among other things, that the post-01.07.2012 demands were confirmed under provisions applicable to the erstwhile positive-list regime; employee-cost reimbursements did not involve outsourcing; print services involving multi-function printers constituted deemed sale; the value of goods and materials was eligible for exemption under Notification No. 12/2003-ST; course material was sold to independent service providers and was not consideration for commercial coaching; amounts received from Intel did not constitute Advertising Agency Service; CSMC services were eligible for the benefit of Notification No. 12/2003-ST; and the demand up to September 2014 was barred by limitation.
