Service tax demand remanded for fresh consideration after income-tax return data and reverse-charge issues required reevaluation.

Service tax demand based substantially on income-tax return data was set aside because similar adjudications had already been remitted for reconsideration in connected matters. The order directed fresh examination of whether the activity fell within section 65B(44) of the Finance Act, 1994, the negative list, applicable exemption notifications, reverse-charge liability, and limitation. The appellate dismissal was only for non-payment of statutory deposit and not on merits, so the matter was restored to the stage of reply to the show-cause notice. All contentions were kept open, and the petitioner was given an opportunity to file a reply before the authority.

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Issues: Whether the order-in-original sustained a service tax demand based substantially on income-tax return data, and whether the matter warranted remand for fresh consideration after the appellate dismissal for non-payment of statutory deposit.

Analysis: The order records that similar adjudications based solely on inputs from income-tax returns had already been remitted for reconsideration in connected matters, with specific directions to examine coverage under section 65B(44) of the Finance Act, 1994, the negative list, applicable exemption notifications, liability under the relevant reverse-charge framework, and limitation. The appellate rejection was noted to be only for want of statutory deposit and not on merits. In view of these circumstances, the order-in-original was set aside and the matter was restored to the stage of reply to the show-cause notice, with all contentions kept open.

Conclusion: The matter was remanded for fresh consideration, and the petitioner was granted an opportunity to file a reply before the authority.

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