CESTAT Kolkata Quashes ₹34.63 Lakh Demand for No Pre-SCN Consultation

By CA Sandeep Kanoi Service Tax Judiciary August 25, 2026

TaxGuru Citation: 2026 taxguru.in 11620
Case Name: SIS Limited Vs Pr. Commissioner of C.G.S.T. and Central Excise (CESTAT Kolkata)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All CESTAT, CESTAT Kolkata

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SIS Limited Vs Pr. Commissioner of C.G.S.T. and Central Excise (CESTAT Kolkata)

CESTAT Kolkata considered an appeal against Order in Original No. 03/ST/Commissioner/2024 dated 16.01.2024, which confirmed Service Tax demand of Rs.34,63,730/- with interest while dropping the remaining demand of over Rs.6.45 crores out of Rs.6,79,14,092/-. The Show Cause Notice dated 18.10.2019 covered 2014-15 to 2016-17. The appellant contended that pre-Show Cause Notice consultation was mandatory for demands above Rs.50 lakhs under the Board’s Instruction dated 21.12.2015 and Circular No.1053/02/2017-CX dated 10.03.2017, whereas Circular No.1079/03/2021-CX dated 11.11.2021 subsequently made consultation non-mandatory for specified suppression-related cases. The Tribunal held that the 2017 Circular did not distinguish suppression and non-suppression cases and that the 2021 Circular could not retrospectively alter the position. It relied upon L AND T Hydrocarbon Engineering Ltd. v. Union of India and Jay Mahakali Industrial Service Versus Union of India. The Tribunal also noted that about 95% of the demand had been dropped and the Revenue filed no appeal against that portion. It held that pre-consultation had not been followed and set aside the confirmed demand of Rs.34,63,730/- along with interest and penalty, with consequential relief, if any, as per law.