Commissioner of Central Excise And Service Vs Reebok India Company (Punjab And Haryana High Court)
Tax Classification Takes the Supreme Route: P&H High Court Closes the Wrong Appellate Door
Summary: In Commissioner of Central Excise & Service, Panchkula v. M/s Reebok India Company, decided on 19 August 2026, the Punjab & Haryana High Court examined a departmental appeal against the order dated 25 August 2023 passed by CESTAT, Chandigarh, in Service Tax Appeal No. 56241 of 2013.
The underlying controversy concerned the Department’s attempt to levy service tax on royalty payments by treating the transaction as an Intellectual Property Rights service taxable through the reverse charge mechanism. Another question related to the appropriate classification of certain services—whether they amounted to Business Auxiliary Service or Technical Inspection & Certification Service. Both questions directly concerned the existence, nature & classification of the service-tax liability.
While entertaining the appeal, the High Court, through its order dated 13 May 2025, recorded a preliminary objection raised by Reebok regarding the appeal’s maintainability. The respondent contended that since the dispute related to taxability & classification, the departmental appeal could be presented only before the Supreme Court. Departmental counsel was granted time to obtain instructions on this objection.
