The department had initiated action based on the appellant's ...

Tax authority overruled for presumptive service tax demand based solely on Income Tax Return without proper investigation.

December 6, 2024

Case Laws Service Tax AT

The department had initiated action based on the appellant's Income Tax Return (ITR) and compared it with the Service Tax Returns (STR), considering the entire amount shown as 'Sale of Service' in the ITR as the presumptive value of services rendered during the financial year 2015-16. However, the Tribunal held that the ITR could have triggered an inquiry into the non-payment of service tax, if any, but it cannot be the basis for determining the value of services rendered, especially under the extended period of time by invoking fraud, suppression, etc., without any investigation or proof of evasion. The burden of proof lies on the revenue to establish the blameworthy conduct of the appellant. The Tribunal set aside the impugned order, considering it a violation of the principles of natural justice.

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The department had initiated action based on the appellant's ...

Tax authority overruled for presumptive service tax demand based solely on Income Tax Return without proper investigation.

December 6, 2024

Case Laws Service Tax AT

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