Case Detauils: Maruti Suzuki India Ltd. vs. Commissioner of Central Excise and Service Tax, Gurgaon-II (2025) 36 Centax 24 (Tri.-Chan)
Judiciary and Counsel Details
- S/Shri S.S. Garg, Member (J) & P. Anjani Kumar, Member (T)
- Ms Krati Singh & Ms Samiksha Uniyal, Advocates, for the Appellant.
- Mr Siddharth Jaiswal, Mr Narinder Singh & Mr Yashpal Singh, Authorised Representatives, for the Respondent.
Facts of the Case
The assessee, a recipient of Consulting Engineering Services from a foreign service provider having no office in India, was issued show cause notices proposing recovery of Education Cess and Secondary and Higher Education Cess on Service Tax under a Best Judgment assessment in terms of Section 72 of the Finance Act, 1994. The Department contended that the cess should be computed on the gross Service Tax amount inclusive of Research and Development (R&D) Cess, whereas the assessee submitted that such cesses were leviable only on the net Service Tax component. The dispute arose out of the Department’s computation method for determining the assessable base for cesses under the provisions of Sections 72 and 73 of the Finance Act, 1994. The matter was accordingly placed before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).
CESTAT Held
The CESTAT held that Education Cess and Secondary and Higher Education Cess were leviable only on the net Service Tax amount and not on the gross amount inclusive of R&D Cess. It observed that the issue was no longer res integra, as in the assessee’s own earlier case, it had been judicially determined that these cesses were to be calculated solely on the Service Tax component actually payable. The Tribunal therefore applied the same reasoning and rejected the Department’s contention that inclusion of R&D Cess formed part of the taxable base for computation of the Education Cess and Secondary and Higher Education Cess. Accordingly, the demand computed on the gross Service Tax amount inclusive of R&D Cess was set aside.
List of Cases Cited
- Commissioner v. S.S. Engineers — 2023 (386) E.L.T. 192 (SC) — Relied on [Paras 4.1, 7]
- Commissioner v. Rosmerta Technologies Ltd — (2023) 8 Centax 184 (S.C.) = 2023 (385) E.L.T. 808 (SC) — Relied on [Paras 4.1, 7]
- Maruti Suzuki Ltd. v. Commissioner — 2025 (1) TMI 78 CESTAT Chandigarh — Applied [Paras 4, 6, 7]
- Rosmerta Technologies Ltd v. CCE — (2023) 8 Centax 183 (Tri. Chan.) — Relied on [Paras 4.1, 7
