Supreme Court declines to interfere
The Supreme Court on March 25 dismissed a civil appeal filed by Fox Mandal and Company against the Commissioner of Central Goods and Service Tax, Noida, and declined to interfere with the order passed by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in a matter involving service tax and CENVAT-related demands of about ₹3.89 crore.
A bench of Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe considered the challenge to the CESTAT judgment dated December 11, 2024. The tribunal had upheld substantial service tax demands and had remanded certain issues for reconsideration. The Supreme Court held that no error of law or fact had been made out.
The bench observed:
“Having heard learned counsel appearing for the appellant, we are of the opinion that the Customs, Excise and Service Tax Appellate Tribunal has not committed any error in law or fact in passing the order impugned.”
Dispute arose from 2018 Order-in-Original
The case arose from an Order-in-Original dated December 20, 2018, passed by the Principal Commissioner, CGST, Noida. The order confirmed demands based on alleged irregular availment of CENVAT credit and non-payment of service tax for the period from 2010-2011 to 2014-2015.
The total confirmed liability, including service tax and CENVAT credit, aggregated to about ₹3.89 crore.
Department’s allegations against the law firm
According to the department, the law firm had availed CENVAT credit of ₹89.63 lakh without producing the prescribed documents. The department also alleged that the firm failed to substantiate its claim of export of services and suppressed taxable value in its ST-3 returns.
What the CESTAT held
The CESTAT upheld the denial of CENVAT credit on the ground that photocopies of invoices are not valid documents under Rule 9(1) of the CENVAT Credit Rules, 2004.
However, the tribunal remanded the issues relating to export of services and verification of documents to the adjudicating authority for fresh consideration.
Appeal dismissed
Finding no infirmity in the reasoning adopted by the tribunal, the Supreme Court dismissed the appeal and upheld the CESTAT order.
For Appellant: Surjendu Sankar Das, AOR, Advocates Vishwajeet Singh Shekhawat, Yoovika Toor.
Case Title: Fox Mandal And Company vs Commissioner
Case Number: Civil Appeal No. 3883 of 2026
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