TaxTMI 
TaxTMI 
2025 (9) TMI 404
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.... recruitment/ supply agency services and construction services. On the basis of an investigation conducted against the appellant revenue formed an opinion that the appellants were availing exemption on account of the services provided to foreign embassies, personal and were claiming the exemption without fulfilling the conditions contained therein. A show cause notice dated September 04, 2019 were issued to the appellant demanding service tax of Rs. 3,75,95,778/- along with interest and penalty. The Commissioner of Central Goods and Services Tax, Delhi South Commissionerate vide order dated 26.08.2022 confirmed the duty with interest while imposing equal penalty under section 78 of the Finance Act, 1994 and penalty of Rs. 5,000/- under sect....
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....d merely on account of procedural lapses or on technical infirmities; non mentioning of the date of undertaking or Sr. No. of the invoices is but a minor valuation. Learned counsel takes us through the certificates issued by various embassies and submits that though the impugned order submits that the certificates issued by the embassy of Japan was provided by the embassy on December 10, 2019 and was submitted to the adjudicating authority; However, the adjudicating authority confirmed the demand on that count also. He submits that it was held in the following cases that substantive benefit cannot be denied for procedural violations. • SOTC Travels Services Pvt Ltd. 2021 (55) GSTL 332 (TR-Del); • Mangalore Chemical....
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....all the transactions are recorded in the books of accounts and ST-3 returns have been filed by the appellant. Therefore, no mala fide intention can be attributed to the appellants and extended period cannot be invoked. 5. Shri Manoj Kumar, learned authorized representative appearing for the department reiterates the findings of the OIO and submits that the adjudicating authority rightly held that the conditions of the Notification No. 27/2012 are not fulfilled; in terms of the Notification the Exemption services in respect of the services provided to foreign missions is available subject to production of duly authenticated exemption certificates issued by Protocol division of Ministry of External Affairs; the Adjudicating Authority has c....
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....the foreign diplomatic mission or consular post in India, the Protocol Division of the Ministry of External Affairs or the Protocol Department of the State concerned issues to each of such diplomatic agent or career consular officer an identification card bearing unique identification number and containing a photograph and name of such diplomatic agent or career consular officer and the name of the foreign diplomatic mission or consular post in India, where he is posted; (iii) that the head of the foreign diplomatic mission or consular post, or any person of such mission or post authorised by him, shall furnish to the provider of taxable service, a copy of such certificate duly authenticated by him or the authorised person, alongwi....
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.... 1994, shall, in addition to the information required to be furnished under the said rule, contain the serial number and the date of the undertaking furnished by the said head of foreign diplomatic mission or consular post or in case of diplomatic agents or career consular officers posted in such foreign diplomatic mission or consular post in India, the unique identification number of the diplomatic agent or career consular officer, as the case may be; and (vi) that the provider of taxable service shall retain the documents referred to in the conditions (i), (ii) and (iii) alongwith a duplicate copy of the invoice issued, for the purposes of verification." 8. On going through the adjudication order, we find as submitted by the l....
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....s principle created confusion and resulted in unsatisfactory state of law. In spite of catena of judgments of this Court, which took the contra view, holding that an exemption notification must be strictly construed, and if a person claiming exemption does not fall strictly within the description of the notification otherwise then he cannot claim exemption." 9. We find that in case of Dilip Kumar the Hon'ble Apex Court, though held that the conditions have to be followed by any person who wishes to avail the exemption also held that any interpretation which defeats the purpose of the Notification and renders it a futile piece of legislation has to be avoided. In that case Hon'ble Supreme Court held that the condition requiring payment of....