https://www.taxtmi.com/caselaws?id=789450 Service Tax demand cannot be sustained merely because Income Tax Returns and ST-3 Returns show a mismatch; the department must independently verify the nature of services and the taxpayer's eligibility to the basic exemption. Where the record shows Nil ST-3 Returns and no substantive evidence of taxable service, suppression, or wilful misstatement, the demand lacks legal basis and the extended period of limitation cannot be invoked. On that footing, the analysis concludes that the Service Tax demand, interest, and penalties were not sustainable and were set aside. en-us Fri, 27 Mar 2026 00:00:00 +0530 Thu, 09 Apr 2026 08:09:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=789450 Service Tax demand cannot be sustained merely because Income Tax Returns and ST-3 Returns show a mismatch; the department must independently verify the nature of services and the taxpayer's eligibility to the basic exemption. Where the record shows Nil ST-3 Returns and no substantive evidence of taxable service, suppression, or wilful misstatement, the demand lacks legal basis and the extended period of limitation cannot be invoked. On that footing, the analysis concludes that the Service Tax demand, interest, and penalties were not sustainable and were set aside. Case-Laws Service Tax Fri, 27 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=789450