9911796707
TMI Blog2025 (2) TMI 1059X X X X Extracts X X X X X X X X Extracts X X X X ..... asis of data in Form 26AS, Revenue cannot issue show cause notice demanding service tax. Here it is noted that charging Section 66B of Finance Act, 1994 provides for levy of service tax at a specific percentage on the value of service. Section 67 of Finance Act, 1994 provides that where service tax is chargeable on a taxable service with reference to its value, then such value shall be the consideration in money charged by the service provider - it is clear that while determining value of taxable service under Section 67 ibid, such aspect as to the activities which are covered by negative list and which are mentioned in the definition of service as those which are not covered by such definition become important.
Conclusion - The demand cannot be raised merely on the basis of the data received from the Income Tax Department, without any corroborating evidence to substantiate that the value received were in connection with taxable service rendered by the Appellant.
The impugned order set aside - appeal allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... vices provided to local Government are exempted under Entry No. 12A of mega exemption notification. Further, he has submitted that the issue of sustainability of show cause notice issued primarily relying on the data received from Income Tax Department in Form 26AS and without examining the records of the assessee is no more res integra and settled through series of decisions of this Tribunal. He has relied on the decision of this Tribunal in the case of Umesh Tilak Yadav 2023 (11) TMI 473 (CESTAT Mumbai) and the decision of this Tribunal in the case of Maa Kalika Transport Pvt. Ltd. 2023 (79) GSTL 263 (T-Kol). Further he has also relied on the decision of this Tribunal in the case of Go Bindas Entertainment Pvt. Ltd. 2019 (27) GSTL 397 (T-All) and the decision in the case of Reynolds Petrochem Ltd. 2023 (68) GSTL 292 (T-All.). He has prayed to set aside the impugned order and allow the appeal. 3. Heard the learned AR. Learned AR has supported the impugned order-in-original. 4. We have carefully gone through the record of the case and submissions made. On perusal of the show cause notice, we note that the entire show cause notice is based on the data received from Income Tax Depa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve that there is no new material evidence brought on record for raising the demand of service tax on the value mentioned in the records received from the Income Tax department. The demand cannot be raised merely on the basis of the data received from the Income Tax Department, without any corroborating evidence to substantiate that the value received were in connection with taxable service rendered by the Appellant. This view has been supported by the following judgments:- (i) Larsen & Toubro Ltd., Vs. ACST Reported in (2023) 2 Centax 327 (Cal.); (ii) CST Vs. Hindustan Cables Ltd., reported in 2022 (382) ELT 188 (Cal.)." As also in the case of Go Bindas Entertainment Pvt. Ltd. (supra), this Tribunal in para 4 has held as follows:- "4. After hearing both the sides duly represented by learned Advocate Shri Kamal Jeet Singh for appellant and learned A.R. Shri Sandeep Kumar Singh, Deputy Commissioner for revenue, we note that the entire case of revenue is based upon the comparison of figures, as pointed out in the balance sheet with the figures reflected in the ST-3 returns. The appellant has explained that such difference has occurred on account of the accounting system as per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice Tax. In view of these judgments, the appellant succeed on this ground also. The impugned order is set aside and the appeal is allowed. In the matter of Commissioner of C.Ex.Jaipur-I Vs. Tahal Consulting Engineers Ltd. - 2016(44) S.T.R. 671 (Tri. Del) the Tribunal also observed as under 2. The brief facts of the case are that respondents are engaged in providing taxable service. Certain proceedings were initiated against them for not paying the Service Tax mainly on the basis of income-tax return filed by them at Jaipur. It is the case of the Revenue that the respondent failed to discharge the Service Tax on full taxable value as reflected in the income-tax returns. Accordingly, the original authority, after due process, confirmed the Service Tax of Rs. 8,25,789/- under the category of 'Consulting Engineer service'. He also imposed penalties under various sections on the respondent. On appeal by the respondent, the learned Commissioner (Appeals) vide impugned order set aside the Order-in-Original and allowed the appeal. Aggrieved by this, Revenue is in appeal. 3. The main grounds of appeal is that respondent could not produce documentary evidence about Service Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to make tax deduction as a collecting agency, as envisaged under the Income-tax law. The Commissioner (Appeals) has, therefore, rightly set aside the orders-in-original insofar as respondent of Service Tax Appeals Nos. 170, 171 and 173 of 2005 was concerned. As per the above settled legal position, we hold that the demand of service tax is not sustainable on the basis of TDS /26AS statements." 5. On perusal of the above stated findings of this Tribunal in various cases, we note that the issue is no more res integra and it has been decided that only on the basis of data in Form 26AS, Revenue cannot issue show cause notice demanding service tax. Here we note that charging Section 66B of Finance Act, 1994 provides for levy of service tax at a specific percentage on the value of service. Section 67 of Finance Act, 1994 provides that where service tax is chargeable on a taxable service with reference to its value, then such value shall be the consideration in money charged by the service provider. Therefore, it is primarily important to determine the value on which service tax shall be levied at a specific percentage and such value should be the value of taxable service. Clause ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
