TaxTMI 
TaxTMI 
2026 (8) TMI 931
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....2019-20 dated 12.02.2020 SCN 02/AE/Gr.-II/2017-18 dated 09.11.2017 27/GST/GGN/2019-20 dated 18.04.2019 Amount involved Service tax of Rs. 16,24,38,459/- and Penalty of Rs. 16,24,48,459/- alongwith interest. Service tax of Rs. 15,77,37,123/- and Penalty of Rs. 50,10,000/- alongwith interest. Since the issue involved in both the appeals are identical, therefore both the appeals are taken up together for the purpose of discussion and decision. For the sake of convenience, the facts of the Appeal No. ST/60861/2019 are being taken up. 2. Briefly the facts of the present case are that the appellant is engaged in providing Construction Services and has issued corporate guarantees to Banks/NBFC for credit facilities availed by its subsidiaries/associate entities. In furtherance of enquiry, conducted by the Anti-Evasion Branch. The Department entertained the view that appellant is liable to pay service tax for giving credit facility to subsidiaries/associate under Banking and Financial Services. An enquiry was conducted by Anti-Evasion Branch and a show cause notice dated 09.11.2017 was issued to the appellant for demanding service tax (as stated above in the table) ....
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....ng judicial precedents on identical issue. 4.1 He further submits that consideration is mandatory for a service to attract service tax under the charging provisions of Section 66 (applicable for the period upto 30.06.2012) and under Section 66B of the Finance Act, 1994 (applicable for the period from 01.07.2012 to 30.06.2017) read with Section 67. He further submits that it is an undisputed fact that the appellant has not charged any commission or interest for issuing corporate guarantees to its subsidiaries/associates and this fact has been recorded in the show cause notice as well as in the impugned order. He further submits that in the absence of any consideration the activity of issuance of corporate gurantee does not meet the requirement of charging sections 66 and 66B. He also submits that the definition of "service" under Section 65B(44) as applicable for the period post 01.07.2012 itself stipulates the requirement of consideration. 4.2 He further submits that impugned orders have unlawfully applied notional valuation to deem consideration which none exists, contrary to the provisions of Sections 66/66B and 67(1)(iii) of the Finance Act, 1994 read with Rule 3(b) of the....
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....lecommunication India Co Pvt. Ltd. - 2025VIL-660-CESTAT-CHD * Omaxe Chandigarh Vs Commr, CGST, 2024-VIL-2005CESTAT-DEL-ST * Sowar Pvt Ltd. Vs. Commr. Of Service Tax - 2023-VIL485-CESTAT-DEL-ST * M/s India Infrastructure & Logistics Vs Commissioner Of Central Goods, Service Tax, Central Excise-Delhi East, 2024-VIL-1041-CESTAT-DEL-ST * The Commissioner, Central Excise & Service Tax Vs M/S Pharmax Corporation Limited, 2024-VIL-290-CESTATDEL-ST * Commr. of CGST & CE Vs. Edelweiss Financial Services Ltd.-2022-VIL-998-CESTAT-MUM-ST * Commr. of CGST & CE Vs. Edelweiss Financial Services Ltd. 2023-VIL-34-SC-ST. 4.5 He also submits that the invocation of extended period is not tenable as there is no positive act of suppression and the issue involved is interpretation of law. For this, he relies on the decision of this Tribunal in the case CCE, Rohtak Vs. M/s Jindal Stainless Steel (Supra), wherein in such cases, demand was held to be time barred beyond the normal period of limitation. 5. On the other hand, the learned authorized representative for the Department reiterates the findings of the impugned order and submits that the con....
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....torial engagement of Reserve Bank of India arises from its own statutory empowerment and to graft that supervision on a tax statute for determining tax liability is not tenable. 7. The adjudicating authority has, rightly, declined to be guided by the decision of the Tribunal in re Kaveri Agri Care Pvt Ltd as it is settled law that interim orders do not offer themselves as binding precedent and the lack of elaboration of the observation therein detracts from its employability to advance the case of Revenue...... 8. The criticality of 'consideration' for determination of service, as defined in section 65B(44) of Finance Act, 1994, for the disputed period after introduction of 'negative list' regime of taxation has been rightly construed by the adjudicating authority. Any activity must, for the purpose of taxability under Finance Act, 1994, not only, in relation to another, reveal a 'provider', but also the flow of 'consideration' for rendering of the service. In the absence of any of these two elements, taxability under section 66B of Finance Act, 1994 will not arise. It is clear that there is no consideration insofar as 'corporat....
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....mining the value of consideration as 2% of the guaranteed amount. 25.1. Learned Counsel for the appellants submits that the issue is no longer res integra there is neither a service nor any consideration involved in cases where corporate guarantee is provided by the associated enterprises to the banks for working capital related loans required by the Assessee: Hon'ble Tribunal in a series of judgments held that no Service Tax under the category of banking and other financial services can be demanded on Corporate Guarantee provided by Associated Enterprise. We find that Tribunal in the case of DLF Home Developers Ltd [2023 SCC Online CESTAT 962] held that: 6. Coming to the second issue, we find that the Department has not adduced any evidence to the effect that the appellants have received any consideration in providing bank guarantees. This Bench in the case of appellants group company have decided the issue vide Final Order No.60890/2019 dated 21.10.2019 in their favour. The Bench observed that: "4. It is an admitted fact that the appellant has not received any consideration from either from the financial institutions or from their associates for pro....