# In the matter of Commissioner of CGST and Central Excise vs. Edelweiss Financial Services Ltd.

> SC judgment dated 2023-03-17. Citation: TCN-2023-SC-00089. The case involves a civil appeal against the order passed by the Custom Excise Service Tax…

- **Court:** SC
- **Order date:** 17 Mar 2023
- **Citation:** TCN-2023-SC-00089
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/commissioner-of-cgst-and-central-excise-vs-edelweiss-financial-services-ltd-7dc69b28

## Summary

### Background

The case involves a civil appeal against the order passed by the Custom Excise Service Tax Appellate Tribunal, West Zonal Bench at Mumbai, which upheld the Principal Commissioner GST's finding in favor of the assessee. The Commissioner of CGST and Central Excise filed the appeal challenging the concurrent finding.

## Facts

The Commissioner of CGST and Central Excise filed a civil appeal against M/S Edelweiss Financial Services LTD. The appeal arose from a judgment and order passed by the Custom Excise Service Tax Appellate Tribunal, West Zonal Bench at Mumbai, which had upheld the Principal Commissioner GST's finding in favor of the assessee. The core issue was whether the issuance of corporate guarantees to group companies without consideration constitutes a taxable service. The Revenue sought to challenge the finding that the assessee had not received any consideration. The respondent argued that such guarantees are not taxable under the Finance Act, 1994. The Tribunal's judgment emphasized the importance of 'consideration' for determining service tax liability.

## Issues and analysis

### Issue 1: Whether the issuance of corporate guarantees to group companies without consideration constitutes a …

**Ratio:** The criticality of 'consideration' for determination of service, as defined in section

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**Reasoning:** The court relied on the Tribunal's judgment, which emphasized that any activity must

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**Interpretation:** The interpretation of 'service' under the Finance Act, 1994, particularly

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**Application:** In this specific case, the assessee provided corporate guarantees to its group

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## Parties

- **Judges:** Hrishikes…; Manoj M…
- **Appellants:** COMMISSIONER OF…
- **Respondents:** M/S EDELWEISS…

## Timeline

- **2022-02-16 — Impugned…**: Date of the impugned final judgment and order No.A/85986/2022 in STA No.87134/2018 passed…
- **2023-03-17 — Hearing…**: Date on which the petition…

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