Commissioner of Service Tax Vs Globe Civil Projects Pvt Ltd (Delhi High Court)
Delhi High Court has dismissed an appeal filed by the Commissioner of Service Tax, Delhi III, against Globe Civil Projects Pvt Ltd, ruling that the case regarding service tax on the construction of educational institutions is not maintainable before it. The High Court has instead directed the Revenue to approach the Supreme Court under Section 35L of the Central Excise Act, 1944.
The appeal stemmed from a dispute over whether the construction services for educational institutions are liable for service tax. The Commissioner of Service Tax had initially raised a substantial demand of Rs. 15,90,60,547/- against Globe Civil Projects Pvt Ltd through a show cause notice dated April 22, 2014. However, the original adjudicating authority, in its order dated July 21, 2015, confirmed a demand of only Rs. 22,661/-, specifically for Goods Transport Agency Services, while dropping the major portion of the service tax demand related to educational construction.
Aggrieved by this outcome, the Appellant Department lodged an appeal before the Customs Excise and Service Tax Appellate Tribunal (CESTAT). The CESTAT, through its final order dated March 3, 2025, upheld the decision of the adjudicating authority, leading the Commissioner of Service Tax to file the present appeal before the Delhi High Court under Section 35G of the Central Excise Act, 1944, read with Section 83 of the Finance Act, 1994.
