Service tax demand requires proof of taxable service, not just receipt of consideration from the recipient.

Service tax demand cannot be sustained merely because payments were received from the service recipient; the Revenue must identify the specific taxable service and link the receipt to that taxable activity. Where the record shows that part of the activity involved exempted or non-taxable services and supply of goods, and the show cause notice does not specify any service category, the demand fails for want of evidence that the entire consideration represented taxable services. On that basis, the demand was held unsustainable and the Revenue's appeal was rejected.

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Issues: Whether service tax demand could be sustained solely on the basis of payments received from the service recipient without identifying the taxable services and distinguishing them from exempted or non-taxable services.

Analysis: The demand was founded only on the amounts paid by the service recipient. The record showed that the respondent had also rendered exempted or non-taxable services and supplied goods, and the show cause notice did not specify any service category. In the absence of evidence establishing that the entire consideration represented taxable services, the demand could not be upheld merely because payments were received from the service recipient.

Conclusion: The demand was not sustainable and the Revenue's appeal was rejected.

Ratio Decidendi: A service tax demand cannot be sustained merely from receipt of consideration unless the Revenue identifies the taxable service and adduces evidence linking the receipt to that taxable activity.

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