https://www.taxtmi.com/caselaws?id=468650 A service tax demand based solely on a comparison between income shown in the income-tax return and the ST-3 return was held unsustainable because no independent enquiry or corroborative evidence established short payment, wrongful denial of exemption, or suppression of facts. The assessee had filed regular ST-3 returns and disclosed the nature of services and tax position, so the department could not rely only on third-party data or a different accounting treatment to raise demand. On the same facts, the extended period of limitation was not invocable, as mere disagreement with the declared tax position did not prove fraud, wilful misstatement, or intent to evade tax. Penalties were therefore also unsustainable. en-us Thu, 06 Nov 2025 00:00:00 +0530 Fri, 15 May 2026 20:34:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=468650 A service tax demand based solely on a comparison between income shown in the income-tax return and the ST-3 return was held unsustainable because no independent enquiry or corroborative evidence established short payment, wrongful denial of exemption, or suppression of facts. The assessee had filed regular ST-3 returns and disclosed the nature of services and tax position, so the department could not rely only on third-party data or a different accounting treatment to raise demand. On the same facts, the extended period of limitation was not invocable, as mere disagreement with the declared tax position did not prove fraud, wilful misstatement, or intent to evade tax. Penalties were therefore also unsustainable. Case-Laws Service Tax Thu, 06 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=468650