CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL CHANDIGARH REGIONAL BENCH - COURT NO. I Service Tax Appeal No. 1017 of 2011 [Arising out of Order-in-Original No. 11/RDN/2011 dated 30.03.2011 passed by the Commissioner, Service Tax Commissionerate, New Delhi]

M/s Sistema Shyam Teleservices Ltd ……Appellant

334, Udyog Vihar, MTS Tower, Phase IV, Gurgaon, Haryana 122001 VERSUS Commissioner of Service Tax, Delhi ……Respondent IAEA House, 17-B, IP Estate, MG Marg, New Delhi 110002 WITH Service Tax Appeal No. 55426 of 2013 [Arising out of Order-in-Original No. 167/ST/PKJ/CCE/Adj/2012 dated 15.10.2012 passed by the Commissioner, Central Excise (Adj.), New Delhi]

M/s Sistema Shyam Teleservices Ltd ……Appellant

334, Udyog Vihar, MTS Tower, Phase IV, Gurgaon, Haryana 122001 VERSUS Commissioner, Central Excise, LTU Delhi ……Respondent NBCC Plaza, Pushp Vihar, Saket, New Delhi 110017 AND Service Tax Appeal No. 1242 of 2011 [Arising out of Order-in-Original No. 11/RDN/2011 dated 30.03.2011 passed by the Commissioner, Service Tax Commissionerate, New Delhi]

Commissioner of Service Tax, Delhi ……Appellant IAEA House, 17-B, IP Estate, MG Marg, New Delhi 110002 VERSUS M/s Sistema Shyam Teleservices Ltd ……Respondent

334, Udyog Vihar, MTS Tower, Phase IV, Gurgaon, Haryana 122001 APPEARANCE:

Mr. Gajendra Maheshwari, Ms. Priyamwada Sinha and Mr. Arnav Mehta, Advocates for the Assessee Mr. Shyam Raj Prasad, Special Counsel (AR) for the Revenue CORAM: HON’BLE MR. S. S. GARG, MEMBER (JUDICIAL) HON’BLE MR. P. ANJANI KUMAR, MEMBER (TECHNICAL)

FINAL ORDER NO. 60242-60244/2026 DATE OF HEARING: 18.11.2025 DATE OF DECISION: 17.03.2026 S. S. GARG :

This order will dispose of three appeals. Two appeals viz.

ST/1017/2011 & ST/55426/2013 are filed by the Assessees against the impugned Order-in-Original (‘OIO’) Nos. 11/RDN/2011 dated 30.03.2011 and 167/ST/PKJ/CCE/Adj/2012 dated 15.10.2012 respectively. One appeal viz. ST/1242/2011 is filed by the Revenue against the impugned OIO No. 11/RDN/2011 dated 30.03.2011. All three appeals are taken up together for disposal by this common order. Details of appeals are as under in a tabular form:

2. Briefly stated facts of the present case are that the Assessees, M/s Sistema Shyam Teleservices Ltd were registered centrally as a service provider in the category of Telecommunication Services, Transport of Goods by Road Services, Rent-a-cab Service, Business Support Services, Business Auxiliary Services, Renting of Immovable Property Services, Sponsorship Services, Management & Consultancy Services etc. The Assessees were availing CENVAT Credit of service tax on capital goods, input goods and input services under Cenvat Credit Rules, 2004. They got themselves centrally registered w.e.f. 22.09.2009 under the jurisdiction of Division-II, Gurgaon on shifting of their centralized accounting from Jaipur office to Gurgaon office. They were initially registered for cellular mobile telephone and basic telephone services, and leased circuit and other related services at Jaipur and obtained a centralized registration with Service Tax Authorities in Jaipur w.e.f. 10.05.2007. The department entertained the view that the Assessees had taken inadmissible CENVAT Credit on capital goods, input services and input goods during the relevant period in contravention of Rule 3 & Rule 4 of the Cenvat Credit Rules, which was not admissible to them.

2.1 A show cause notice dated 29.09.2010 was issued to the Assessees proposing denial and recovery of Rs.2,17,21,367/- being ineligible CENVAT Credit taken and utilized for the period Oct 2008 to March 2010. It was also alleged in the show cause notice that the Assessees had shown the opening balance of CENVAT Credit of Rs.1,71,37,92,147/- reflected in column 5B(a) of ST-3 Retuns filed for the period Oct 2009 to March 2010 before Gurgaon Division office, after obtaining centralized registration. It was further alleged that the said amount of CENVAT Credit was not eligible to the Assessees as they had not shifted thei