TaxTMI 
TaxTMI 
2026 (3) TMI 29
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....h Section 83 of the Finance Act, 1994 ['Finance Act'] challenging the impugned order dated 04.09.2025 passed by the Customs, Excise and Service Tax Appellate Tribunal ['CESTAT'] in Service Tax Appeal No. 52302/2022. 2. A brief background of the present case is that the respondent is engaged in providing taxable services under the category of "Security/Detective Agency Services", "Manpower Recruitment/ Supply Agency Services", and "Construction Services other than Residential Complex Including Commercial/Industrial Building or Civil Structures". 3. An investigation was conducted by the Directorate General of Goods and Services Tax Intelligence, during the course of which it was observed, inter alia, that the respondent had allegedly wr....
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....y.; (ii) that in case of diplomatic agents or career consular officers posted in the foreign diplomatic mission or consular post in India, the Protocol Division of the Ministry if 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 authorized by him, shall furnish to the provider of taxable servi....
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....be, the challan issued under the provisions contained in rule 4A of the Service Tax Rules, 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 and 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 conditions (i), (ii) and (iii) alongwith a duplicate copy of the invoice issued, for the purposes of veri....
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.... procedural conditions, the appellant submits that they have since complied now by having the certificates (except in 6 cases) issued by respective embassies/diplomatic missions; some certificates were submitted before the adjudication and some have been since obtained. Therefore, we are of the considered opinion that the substantive compliance of the Notification No. 27/2012 is fulfilled when the appellants have rendered services to the diplomatic missions and obtained certificates. We find that the adjudicating authority did not have an opportunity to go through all the certificates and to extend the benefit of the Notification. Under these circumstances, we are of the considered opinion that the matter should go back to the adjudicating ....
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....ia Services Pvt. Ltd. v. Union of India (2014) 368 ITR (Bom) in support of strict interpretation of fiscal statutes. 14. It is further urged that the CESTAT erred in setting aside penalties under Sections 77 and 78 of the Finance Act despite findings of suppression, willful misstatement, delayed filing of ST-3 returns and improper claim of exemption. The direction to extend cum-duty benefit is also assailed on the ground that there was no evidence that the consideration received was inclusive of service tax. 15. On these grounds, the Revenue submits that the impugned order gives rise to substantial questions of law warranting interference. 16. This Court has considered the matter. The present appeal assails the order dated 04.09.20....
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....t that the respondent rendered services to diplomatic missions. It has further noted that the certificates contemplated by the notification have been obtained, though some were produced subsequent to adjudication. The adjudicating authority did not examine all such certificates. Obviously if the respondent was not rendering any service to the foreign embassies or diplomatic missions, the exemption would not apply. 21. In these circumstances, the CESTAT has not granted exemption outright. It has remitted the matter to the adjudicating authority to verify the certificates and to extend the benefit only to the extent the conditions are found to be satisfied. The direction is limited and conditional. It neither dispenses with the requirement....