https://www.taxtmi.com/caselaws?id=785318 Short payment of service tax demands premised solely on unexplained differences between audited financial statements and ST-3 returns cannot be sustained because the revenue bears the onus to prove receipts were consideration for taxable services, and such proof was absent, resulting in those demands being set aside. Liability asserted as declared service for contractual penalties and for consultancy fees paid to foreign entities was negated as the amounts and interest had been discharged prior to notice, so penalties were not warranted and were quashed. CENVAT credit for input services used in providing output services was allowed; consequent interest and penalties were set aside. en-us Tue, 16 Dec 2025 00:00:00 +0530 Thu, 22 Jan 2026 08:41:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=785318 Short payment of service tax demands premised solely on unexplained differences between audited financial statements and ST-3 returns cannot be sustained because the revenue bears the onus to prove receipts were consideration for taxable services, and such proof was absent, resulting in those demands being set aside. Liability asserted as declared service for contractual penalties and for consultancy fees paid to foreign entities was negated as the amounts and interest had been discharged prior to notice, so penalties were not warranted and were quashed. CENVAT credit for input services used in providing output services was allowed; consequent interest and penalties were set aside. Case-Laws Service Tax Tue, 16 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=785318