Important Cases

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Case One

Hotel Excelsior Ltd., 19, Ashoka Road, New Delhi (hereinafter referred to as HEL) are engaged in providing hotel services falling under the category of tourism and travel related services.

HEL imported three Mercedes Benz cars in terms of EPCG license no. 0530144369/3/11/00 dated 20.08.2007 on the condition that HEL would fulfill export obligation of eight times the duty saved by providing hotel services to foreign guests within a period of eight years from the date of issue of authorization. The cars were cleared by the customs authorities on payment of customs duty at the rate of 5% in terms of Notification No. 97/2004-Cus dated 17.06.2004 at Inland Container Depot Tuglakabad New Delhi-110 020. The duty, penalty and interest involved was Rs. 2,34,84,041/-, Rs.2,68,85,467/- , Rs. 34,01,426/- respectively.

HEL also imported one Rolls Royce SWB Phantom RHD car in terms of EPCG license on the condition that HEL would fulfill export obligation of eight times the duty saved by providing hotel services to foreign guests within a period of eight years from the date of issue of authorization. The car was cleared by the customs authorities on payment of customs duty at the rate of 5% in terms of Notification No. 97/2004-Cus dated 17.06.2004 at Air Cargo, Customs House, New Delhi. The duty involved was Rs. 1,36,68,230/- besides an equivalent amount of penalty and interest. There was also a liability for payment of redemption fine of Rs. 50,000/- under Section 125.

The matters were argued in length before the hon’ble CESTAT, New Delhi by us and both the above said cases were decided in favour of HEL with consequential relief.

Case Two

Container Corporation of India Limited, CONCOR Bhawan, C-3, Mathura Road, New Delhi (hereinafter referred to as CONCOR) were issued show cause notice by Directorate General of Central Excise Intelligence, R.K. Puram, New Delhi (DGCEI)based on the Concession Agreement dated 04.01.2007 between Railway Administration, Government of India and CONCOR involving. Service tax amounting to Rs. 690,19,63,937/- along with education cess amounting to Rs. 13,80,39,279/- and secondary and higher education cess amounting to Rs. 6,90,19,639/- totalling to Rs. 710,90,22,855/- on the ‘Haulage Charges’ paid by them to the Railway Administration towards receiving ‘Support Services’ of business and commerce in terms of the Concession Agreement, payable by them under the reverse charge mechanism. Penalty and interest was also demanded.

The extensive arguments were made by us before DGCEI, New Delhi and was finally decided in favour of CONCOR.

Case Three

Raj Furnitures, 16/5, Mathura Road, Faridabad-121002 (hereinafter referred to as RF) was registered with the Service Tax Department for providing construction services in respect of commercial or industrial buildings and civil structures. Show cause notice was issued to RF wherein demand of `6,15,42,809/- was raised along with equivalent amount of penalty on the ground that the RF was providing completion and finishing services and accordingly not entitled to abatement in terms of notifications no. 15/2004-ST and 1/2006-ST.

The matter went before the Hon’ble CESTAT, where the merits of the case were vehemently argued by us and finally the proceeding initiated against RF was set aside.