Commissioner of Service Tax Kolkata Vs Commissioner of CGST & CX (Calcutta High Court)
The Calcutta High Court has dismissed an appeal filed by the revenue, Commissioner of Service Tax Kolkata, against an order from the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Eastern Zonal Bench, Kolkata. The Tribunal’s order, dated October 10, 2023, in Service Tax Appeal No. 127 of 2012, was challenged by the revenue, seeking to recover service tax, education cess, and secondary & higher education cess totaling Rs. 1,12,87,367/-, along with interest and penalties under various sections of the Finance Act, 1994.
The revenue had raised several substantial questions of law, including the demand for service tax and cesses under Section 73(1), interest under Section 75, and penalties under Sections 78 and 77 for alleged suppression of facts and failure to register for ‘Business Auxiliary Service’.
A notable procedural aspect was a delay of 327 days in filing the appeal. Despite the explanation offered for the delay not being “fully satisfactory,” the High Court exercised its discretion to condone the delay. This decision was influenced by the objection raised by the respondent’s counsel, who pointed out that the appeal’s monetary value fell below the limit fixed by the Central Board.
