Case Law Details
Senior Quality Assurance Officer Vs Commissioner of GST & Central Excise (CESTAT Chennai)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Chennai recently delivered a significant judgment in the case of Senior Quality Assurance Officer vs. Commissioner of GST & Central Excise. This case revolved around the service tax liability on quality assurance charges for testing rifles. The tribunal’s decision has substantial implications for public authorities involved in statutory and mandatory functions. Here, we delve into the details of the case, the arguments presented, and the tribunal’s ruling.
Background of the Case
The appeal was filed against an order dated 11th September 2014, passed by the Commissioner of Customs and Central Excise (Appeals), Trichy. The appellants, registered for providing “Technical Inspection and Certification Service,” were under scrutiny for their service tax payments from 2008-09 onwards. Despite obtaining registration and complying with the service tax provisions for subsequent periods, they had not paid service tax for the period between 2006-07 to 2009-10.
The primary contention was the demand for service tax amounting to ₹41,16,723, along with interest and penalties, for quality assurance charges for testing rifles. The adjudicating authority initially upheld the demand, leading to the appeal before the Commissioner (Appeals) and subsequently to CESTAT Chennai.
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