In a significant turn of events, GST authorities have decided to drop a substantial service tax claim amounting to Rs 7.08 crore against the Competition Commission of India (CCI). This decision comes after the CGST commissioner audit reviewed an appeal filed by the CCI challenging a show cause notice issued by the Directorate General of GST Intelligence (DGGI), Delhi zone.
The show cause notice, issued in 2020 based on an “intelligence report,” alleged that the CCI failed to pay service tax on the fees or consideration received while providing services to various entities. According to the notice, the CCI collected fees from individuals or enterprises approaching them for purposes such as acquisitions, mergers, or amalgamations without registering under the Finance Act and without discharging their service tax liability.
In response, the CCI sought intervention from the adjudicating authority, the Commissioner of CGST & Central Excise, Delhi Audit-1, and secured a favorable ruling. The adjudicating authority emphasized that the CCI, being a body constituted by an Act of Parliament with its accounts audited by the CAG, is not involved in rendering any taxable service. Consequently, the ruling stated, “Hence the liability related to non-filing of return doesn’t arise,” leading to the dismissal of the Rs 7.08 crore service tax demand.
This development provides relief to the CCI, highlighting the importance of its statutory role and reinforcing the argument that it does not fall under the purview of taxable services.
By PTI
