The Supreme Court on Tuesday declined to intervene in a Delhi High Court ruling that directed multiplex company PVR INOX to appeal the ₹17 crore service tax demand through the appropriate appellate tribunal if it wished to contest the order.

A Bench comprising Justices BV Nagarathna and N Kotiswar Singh directed PVR INOX to seek relief from the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) within 15 days, while dismissing the appeal filed in the case.

The Bench was considering an appeal against the Delhi High Court's August 5 order. The case revolves around the applicability of service tax on income generated from renting immovable properties during the pre-Goods and Services Tax (GST) regime.

On April 1 this year, PVR INOX received a notice from the Commissioner of Central GST, Delhi West, demanding ₹17 crores (including interest and penalty) as tax. PVR INOX challenged this demand, arguing that the jurisdiction for such tax demands should be in Mumbai. The company also pointed out that some of the demand notices had been issued to Satyam Cineplexes, a company it had previously acquired.

The Delhi High Court, however, refused to grant relief to PVR INOX, observing that the multiplex company had an equally effective remedy available through a statutory appeal before the CESTAT. Consequently, the High Court declined to quash the show-cause notices.

PVR then took the matter to the Supreme Court, which concurred with the High Court's position that the multiplex company should first seek relief through the CESTAT. 

Advocate Kumar Visalaksh, a Partner at Economic Laws Practice, represented PVR INOX, with the plea being filed through advocate Mahfooz Ahsan Nazki.

Case Title: M/S PVR Inox Limited vs Commissioner GST Delhi West Commissionerate