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IN THE HIGH COURT OF JUDICATURE AT MADRAS
C.SARAVANAN, J.
Hypertherm (India) Thermal Cutting Private Limited, Represented by its Director Mr.Kotagiri Pramod Kumar - Appellant
Versus
The Assistant Commissioner, Office of the Assistant Commissioner of GST and Central Excise - Respondent
W.P.Nos.14460 and 5886 of 2021 and W.M.P.Nos.15345 and 6483 of 2021
Decided on : 20-02-2025
| Table of Content |
|---|
| 1. challenge to gst orders. (Para 1 , 2) |
| 2. court examines procedural history and outlines petitions. (Para 3) |
| 3. confirmation of service tax demand. (Para 4 , 5) |
| 4. rejection of input tax credit refund. (Para 6 , 7) |
| 5. court clarifies the applicability of service tax rules. (Para 8 , 14 , 56) |
| 6. claim for service tax exemption. (Para 9 , 10) |
| 7. show cause notices issued. (Para 11 , 12 , 13) |
| 8. arguments regarding service provision location. (Para 15 , 16 , 18 , 20) |
| 9. respondents' position on service tax. (Para 22 , 23 , 25) |
| 10. arguments on the nature and classification of services. (Para 31) |
| 11. disposal of writ petitions on merits. (Para 32 , 33) |
| 12. interpretation of export service regulations. (Para 34 , 35) |
| 13. court's decision on service tax liability. (Para 58 , 59 , 60) |
| 14. order for refund processing. (Para 61 , 62) |
| 15. final ruling on tax liability and refunds. (Para 63) |
ORDER :
By this Common Order, both the Writ Petitions are being disposed of. In these writ petitions viz., W.P.No.14460 of 2021 and W.P.No.5886 of 2021, the Petitioner has challenged the respective Impugned Order-in-Originals passed by the Assistant Commissioner of GST and Additional Commissioner of GST respectively as detailed below:-
Table-1
| Sl. No. | W.P.No. | Impugned Order No. & Date of the Impugned Order | Particulars | Period |
| 1 | 5886 of 2021 | Order-in-Original Nos.28 to 30/2020-ADC (dated 30.09.2020) | Rs.2,17,21,291/- (Service Tax and Cesses Payable together with Penalty) | October 2012 to September 2014 |
| October 2014 to March 2016 | ||||
| April 2016 to June 2017 | ||||
| 2 | 14460 of 2021 | Order-in-Original Nos.02- 05/2021 (R) | Rs. 37,88,251/- (Rejection of Refund Claim) | July 2012 to September 2015 |
2. The Order-in-Original Nos.28-30/2020-ADC dated 30.09.2020 impugned in W.P.No.5886 of 2021 is preceded by a Show Cause Notice and two Statement of Demands issued to the Petitioner for the period in the following Table as detailed below:-
Table-2
| Sl.No. | Dated | SCN No. | SOD No. |
| 1 | 22.04.2015 | 40/2015-C (ST-II) | - |
| 2 | 21.04.2017 | - | 10/2017 |
| 3 | 09.10.2018 | - | 32/2018 (ADC) |
3. Operative portion of the Order-in-Original Nos.28-30/2020–ADC dated 30.09.2020 impugned in W.P.No.5886 of 2021 reads as under:-
“18. In view of the above discussions, I pass the following order:-
ORDER
I. Show cause Notice No. No.40/2015 dated 22.04.2015:-
(a)I confirm the demand of Rs.76,72,245/- (Rupees Seventy Six Lakhs Seventy Two Thousand Two hundred and Forty five only) being the Service Tax and CESSes payable on the taxable services provided by them during the period October 2012 to September 2014 under Section 73(2) of the FINANCE ACT 1994.
(b)I confirm the interest at applicable rate under Section 75 of the FINANCE ACT 1994, on the demand of service tax and cesses made at l(a) above;
(c) I impose a penalty of Rs.7,67,225/- (Rupees Seven Lakhs Sixty Seven Thousand Two Hundred and Twenty Five Only) under Section 76 of the FINANCE ACT 1994. M/s HYPERTHEM shall however have the option to pay an amount equal to 25% of this amount provided that they pay the entire service tax demanded at 1.(a) above along with interest at applicable rate demanded at 1.(b) above including the 25% of the penal amount within thirty days from the date of receipt of this order,
II. Statement of Demand No. No. 10/2017 dated 21.04.2017:-
(a)I confirm the demand of Rs.69,27,162/- (Rupees Sixty Nine Lakhs Twenty Seven Thousand One Hundred and Sixty Two only) being the Service Tax and CESSes payable on the taxable services provided by them during the period October 2014 to March 2016 under Section 73(2) of the FINANCE ACT 1994.
(b)I confirm the interest at applicable rate under Section 75 of the FINANCE ACT 1994, on the demand of service tax and cesses made at II(a) above;
(c) I impose a penalty of Rs.6,92,716/- (Rupees Six Lakhs Ninety Two Thousand Seven Hundred and Sixteen Only) under Section 76 of the FINANCE ACT 1994. M/s HYPERTHEM shall however have the option to pay an amount equal to 25% of this amount provided that they pay the entire service tax demanded at II(a) above
Services provided by the petitioner constituted exports under prevailing tax rules, thus exempt from service tax, necessitating a refund of input tax credit.
Clinical research services on foreign client-supplied goods, performed in India but reports delivered abroad, qualify as export of service; Rule 4 of POPS Rules inapplicable as goods are altered, not....
Services constituting post-production digital processing do not fall under Video Tape Production Services; thus, qualify as export under relevant tax rules.
The Supreme Court upheld that services provided outside India, when paid in convertible foreign exchange, do not attract service tax, confirming the validity of the CESTAT's decisions on tax liabilit....
The court emphasized that for services to qualify as 'export of services', authorities must accurately ascertain the petitioner's role as an intermediary, citing inadequate findings in previous rulin....
Steamer agents and importers cannot be held liable for service tax under challenged notifications as they are not the recipients of service, establishing the necessity for clear recipient-service pro....
The court ruled that GST does not apply to services executed outside India's territory, affirming that the taxpayer's activities in Maldives constituted a fixed establishment subject to local laws.
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