Commissioner of Central Tax And Central Excise Vs Chevron Phillips Chemicals India Pvt. Ltd. (Supreme Court of India)
The matter originated from an appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) challenging the order dated 20.09.2019 passed by the Commissioner, Central Tax and Central Excise, Navi Mumbai. By the impugned order, the adjudicating authority confirmed a service tax demand of ₹6,37,70,061, together with interest and an equivalent penalty against the appellant.
Read CESTAT Mumbai Order in this case: Sales Promotion Services to Foreign Principal Are Not Intermediary Services: CESTAT Mumbai
The appellant was engaged in providing sales promotion and other sales support services to its associated company, M/s Chevron Philips Chemicals Global FZE (CPC Global) located outside India. The services were classifiable as Business Auxiliary Service under the Finance Act, 1994. Since the appellant claimed that its entire output services were exported to its overseas associated company, it sought refund of accumulated unutilized CENVAT credit under Rule 5 of the CENVAT Credit Rules, 2004 read with Notification No. 27/2012-CE (NT) dated 18.06.2012. On scrutiny of the refund application, the jurisdictional Commissioner issued a show cause notice alleging that the appellant had provided services as an agent of CPC Global and was therefore an intermediary. It was further alleged that the appellant had failed to discharge service tax on the taxable value, resulting in the demand of ₹6,37,70,061.
