DUDigital Global Limited is a continuation of the contested show cause notice dated September 18, 2020, regarding the non-payment of service tax on imported services under the reverse charge mechanism. A corrigendum was issued on November 10, 2023, three years after the initial show cause notice, in accordance with the previous notification submitted to the NSE on February 7, 2024. The Office of the Commissioner of Central Goods and Service Tax Audit -II Delhi issued Order No.

C No. /IV (16) HQ/Adj/CGST-South/DT/41/2020/405/24/04/2024 on April 24, 2024, imposing a GST demand of INR 5,50,80,634/- under the RCM, with interest of INR 24,43,925/- penalty of INR 5,50,80634/- and an additional penalty of INR 10,000/-. The Company is contesting the impugned order of the Commissioner of Central Goods and Service Tax Audit -II Delhi on the following grounds: The Company has paid the said amount of INR 5,50,80,634/- to the department but only with an inadvertent error in ST3 return for October 2015 to March 2016 under the head service tax on output tax liability instead of service tax on RCM.

The Show Cause Notice was issued in terms of Rule 5A of the Service Tax Rules which is already declared Ultra Vires by the Hon`ble Delhi High Court in some other cases. The alleged demand is Revenue Neutral in nature since have deposited the RCM through Cash Challans and are eligible for input credit of that RCM. The time limit for adjudication of the Show Cause Notice in terms of Section 73(4B) of the Finance Act, is 1 year but the said Show cause notice was issued after 3 years which is beyond the time limits.