Payal Marriage Palace Vs Commissioner of Central Excise & CGST (CESTAT Delhi)
The appellant, Payal Marriage Palace, engaged in providing “Mandap Keeper” services, was accused of failing to obtain service tax registration and pay due service tax from 2011-12 to 2014-15. The case began when the department, based on a copy of Bill No. 37 dated 20.10.2011 amounting to ₹9,00,000 issued to one Mr. Iqbal Singh, searched the appellant’s premises, seized bill books, and concluded that service tax of ₹7,46,482 was unpaid. A show cause notice was issued in 2017, and subsequent orders confirmed the demand, interest, and penalties. The Commissioner (Appeals) upheld this decision, prompting the present appeal before CESTAT Delhi.
The appellant argued that the demand was based on assumptions without corroborative evidence. It contended that the impugned bill was forged, possibly stolen by Mr. Iqbal Singh, against whom an FIR was lodged. It was further submitted that the appellant’s income was consistently below the ₹10 lakh exemption threshold under Notification No. 33/2012-ST, and hence, registration and tax liability did not arise. The appellant also argued that it was denied cross-examination of Mr. Iqbal Singh and that the demand was time-barred since there was no suppression or intent to evade tax.
