https://www.taxtmi.com/caselaws?id=792462 Service tax demand based on differences between ST-3 and income-tax returns was held unsustainable where the receipts were explained by records. Job work receipts were supported by financial statements and the tax already stood discharged; amounts treated as works contract services were rendered to government entities without tax being collected; and later-period receipts were backed by invoices for sale of goods carrying VAT and sales tax, taking them outside the service tax net. As the department did not verify the books of account or establish that the receipts were consideration for taxable services, the conditions for invoking Section 73 of the Finance Act, 1994 were not met, and the show cause notice and demand were set aside. en-us Fri, 08 May 2026 00:00:00 +0530 Fri, 29 May 2026 08:59:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=792462 Service tax demand based on differences between ST-3 and income-tax returns was held unsustainable where the receipts were explained by records. Job work receipts were supported by financial statements and the tax already stood discharged; amounts treated as works contract services were rendered to government entities without tax being collected; and later-period receipts were backed by invoices for sale of goods carrying VAT and sales tax, taking them outside the service tax net. As the department did not verify the books of account or establish that the receipts were consideration for taxable services, the conditions for invoking Section 73 of the Finance Act, 1994 were not met, and the show cause notice and demand were set aside. Case-Laws Service Tax Fri, 08 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=792462