Commissioner Of Service Tax Delhi-Iv vs. M/S Ernst And Young Associates LLP
Held
The Court allowed the application for condonation of delay in refiling the appeal. Subsequently, the Court noted that the learned counsel for the appellant (Revenue) sought permission to withdraw the present appeal. This request was made citing a letter from the Assistant Commissioner (Legal) CGST Gurugram, indicating that the revenue involved in the appeal, ₹22.22 lakhs, was below the threshold limit prescribed by the Central Board of Indirect Taxes and Customs in their instructions dated July 11, 2018. A copy of this letter was produced and taken on record. In view of this submission by the appellant, the Court dismissed the appeal as withdrawn. No specific findings were made on the merits of the original refund claim or the orders passed by the lower authorities.
Facts
M/s Ernst & Young Associates LLP (the respondent), registered with Service Tax Division-XVI Gurgaon, provided back office support, data processing, and IT-enabled services to international member firms. The respondent availed Cenvat Credit on input services under the Cenvat Credit Rules, 2004. As the majority of services were exported, the respondent accumulated unutilized Cenvat Credit. They filed refund claims for April to September 2013. The Adjudicating Authority partially accepted the claims. The respondent appealed to the Commissioner Service Tax (Appeals-II) Gurgaon, who allowed the appeal. The CESTAT, Chandigarh, dismissed the Revenue's appeal against this order. The Commissioner of Service Tax Delhi-IV (the appellant) filed the present appeal before the High Court.
Key Issues
1. Whether the present appeal, filed by the Revenue, should be dismissed as withdrawn based on the instructions of the Central Board of Indirect Taxes and Customs regarding monetary limits for filing appeals? The Revenue, through its counsel, sought permission to withdraw the present appeal. This request was based on a letter from the Assistant Commissioner (Legal) CGST Gurugram, citing that the revenue involved (₹22.22 lakhs) was below the threshold limit prescribed by the Central Board of Indirect Taxes and Customs in their instructions dated July 11, 2018. The Revenue relied on these instructions to justify the withdrawal. The Respondent did not appear to have made any arguments against the withdrawal.
Sections Cited
Rule 3, Rule 4
AI-generated summary — verify with the full judgment below
STA No.4/2019 (O&M) 1 IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH STA No.4/2019(O&M) Date of decision:02.09.2019 Commissioner of Service Tax Delhi-IV ..............Appellant v. M/s Ernst & Young Associates LLP ..............Respondents Coram: Hon'ble Mr.Justice Jaswant Singh Hon'ble Mr.Justice Lalit Batra Present:- Mr.Sourabh Goel,Sr.Standing Counsel for Appellant Jaswant Singh,J. Since there is delay of 137 days in refiling the appeal, CM 2225-CII/2019 has been filed seeking condonation of said delay.
For the reasons stated in the application, same is allowed and delay in refiling the appeal is condoned. Main case. Respondent company, engaged in providing of back office support,data process and other IT enabled services to other international member firms of Ernst and Young, is registered with Service Tax Division-XVI Gurgaon. It procured a number of input services from various service providers to provide the aforesaid output services for which it availed Cenvat Credit of the Service Tax paid on such input services under Rule 3 and 4 of the Cenvat Credit Rules,2004. Respondent exported majority of its services outside India and hence was not in a position to utilise the
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