PVR INOX Directed to Appeal ₹17 Crore Tax Demand Before CESTAT
The Supreme Court on Tuesday dismissed an appeal filed by PVR INOX, urging the multiplex company to first approach the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) regarding a ₹17 crore service tax demand issued by the Commissioner of Central GST, Delhi West. A Bench comprising Justices BV Nagarathna and N Kotiswar Singh emphasized that PVR INOX must file their appeal with CESTAT within 15 days [M/S PVR Inox Limited vs Commissioner GST Delhi West Commissionerate].
The appeal stemmed from an August 5 order by the Delhi High Court, which also directed PVR INOX to seek recourse through the appropriate tribunal, rather than quashing the tax demand notices.
The dispute centers around the imposition of service tax on income derived from renting immovable property during the pre-Goods and Services Tax (GST) regime. On April 1, PVR INOX was served with a notice demanding ₹17 crore, including interest and penalties. The company contested the demand, arguing that jurisdiction over such tax disputes lies in Mumbai and pointed out that some of the notices were related to Satyam Cineplexes, which PVR had previously acquired.
Despite PVR INOX’s challenge, the Delhi High Court ruled that the multiplex operator had an effective statutory remedy through an appeal to CESTAT, refusing to cancel the show-cause notices. The Supreme Court upheld this view, dismissing the appeal and directing PVR INOX to approach CESTAT for further relief.
PVR INOX was represented by advocate Kumar Visalaksh from Economic Laws Practice, with the plea filed through advocate Mahfooz Ahsan Nazki.
(With inputs from agency)
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