Principal Commissioner of CGST Vs Pro-Interactive Services India Pvt. Ltd. (Delhi High Court)
The appeal was filed under Section 35G of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994 challenging the order dated 04.09.2025 passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The respondent was engaged in providing services such as Security/Detective Agency Services, Manpower Recruitment/Supply Agency Services, and Construction Services.
An investigation by the Directorate General of Goods and Services Tax Intelligence alleged that the respondent had wrongly availed exemption for services provided to foreign embassies and entities without fulfilling the conditions prescribed under Notification No. 27/2012-ST dated 20.06.2012. The notification granted exemption for services provided to foreign diplomatic missions or consular posts subject to specified conditions, including certification by the Protocol Division of the Ministry of External Affairs, undertakings from diplomatic missions, maintenance of records, and retention of supporting documents.
A show cause notice dated 04.09.2019 proposed recovery of service tax amounting to Rs. 3,75,95,778 along with interest and penalties. The Commissioner of CGST passed an Order-in-Original dated 26.08.2022 confirming the demand with interest and imposing equal penalty under Section 78 of the Finance Act and an additional penalty under Section 77.
