2014 (8) TMI 452 - AT - Service Tax

Rent a cab service - revenue treated the entire amount lying in the bank as consideration for providing the said services - Held that - If the Revenue is holding the said receipt of money as consideration for the services, it is for them to produce evidence to show that the same are relatable to the services being provided by the appellant. The entire money found in the bank s statement, cannot be held to be consideration for rent a cab services . The Revenue has presumed documents from premises of the appellant indicating providing of such services to Escotel, Glaxo, Picric, RCL and Nokia on which he has paid service. As there is no evidence of appellant having provided said services to any other organisations, his bank s statement cannot be considered as value of the services and tax to Service Tax - Decided in favour of assessee.

Issues:
1. Appellant providing 'rent a cab services' without paying Service Tax.
2. Dispute regarding the value of services provided.
3. Revenue treating all bank receipts as consideration for services.
4. Appellant's claim of personal transactions mixed with business receipts.
5. Lack of evidence linking bank receipts to services provided.

Analysis:

1. The appellant was found to be providing 'rent a cab services' to various organizations without paying Service Tax. The appellant admitted to providing these services but claimed ignorance about the applicability of Service Tax. After a search of the premises and recording a statement, the appellant paid the due Service Tax of Rs. 45,000.

2. The dispute in the appeal centered around the value of the services provided by the appellant. The Revenue considered all bank receipts, including personal transactions, as consideration for the services, leading to a demand for duty, interest, and penalty. The original adjudicating authority's decision was upheld by the Commissioner (Appeals), prompting the appellant to file the present appeal.

3. Upon reviewing the lower authorities' orders, it was observed that the appellant had indeed paid Service Tax on the consideration received for 'rent a cab services.' The appellant contended that other receipts in the bank statement were personal transactions involving loans, car sales, and other vehicles. The Revenue's assumption that all bank receipts constituted consideration for services lacked evidence linking them to the services provided by the appellant.

4. The appellant's bank statement was presumed by the Revenue to reflect payments for services provided to specific organizations. However, without concrete evidence of the appellant rendering services to these entities, the bank statement could not be solely considered as the value of services for tax purposes. The lack of proof regarding services provided to organizations other than those mentioned undermined the Revenue's claim.

5. In light of the above discrepancies and the absence of substantial evidence connecting bank receipts to services provided, the impugned order was set aside, and the appeal was allowed in favor of the appellant. The decision was pronounced in open court on 12-9-2012, providing consequential relief to the appellant.

This detailed analysis of the judgment highlights the key issues, arguments, and the ultimate decision rendered by the Appellate Tribunal CESTAT NEW DELHI.

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