Commissioner CGST Delhi South Commissionerate Vs Haamid Real Estate Pvt Ltd (Delhi High Court)
The Delhi High Court has directed the Revenue Department to file its appeal concerning the service tax liability of transferring development rights before the Supreme Court, ruling that such a matter is not maintainable before the High Court, particularly when the tribunal’s decision was based on the grounds of limitation.
The case, Commissioner CGST Delhi South Commissionerate Vs Haamid Real Estate Pvt Ltd, originated from a dispute over whether the transfer of development rights is a service subject to service tax. The initial adjudication order passed by the Commissioner on March 28, 2018, had concluded that this service was not taxable. Dissatisfied with this decision, the Revenue Department filed an appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). However, CESTAT, in its order dated November 4, 2024, did not rule on the substantive taxability question but instead dismissed the Revenue’s appeal solely because it was filed beyond the statutory time limit.
Following CESTAT’s dismissal, the Revenue Department approached the Delhi High Court by filing an appeal under Section 35G of the Central Excise Act, 1944, read with Section 83 of the Finance Act, 1994. These sections govern appeals in service tax cases, with Section 35G typically providing for appeals to the High Court on substantial questions of law arising from CESTAT orders.
