2017 (12) TMI 966

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....th the Department and are discharging service tax. On verification of the Income tax returns of the appellant for the years April 2006-2007 to 2010-2011 the Revenue entertained a view that the appellants are not discharging service tax on full taxable consideration received by them. It appeared that they are not paying service tax on some portion of the consideration which is admittedly shown as income in their tax returns. Accordingly, proceedings were initiated against the demand and recover service tax amount of Rs. 18,79,635/-. The case was adjudicated. The Original Authority dropped the demand for the period beyond 5 years and also allowed deduction due to sale of goods by the appellant. He confirmed a total demand of Rs. 16,14,334/-. ....

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....d to another person. The inflated income shown in the income tax return, for other commercial purposes, cannot form basis for confirming service tax demand. In order to substantiate that this income is not an actual income the appellant filed affidavit to the effect that they have rendered service only to the Government Department and they have furnished all the contracts and supporting documents with support of these contracts. These were examined and accordingly the tax demands were reduced by the lower authorities. They have no other income which can be attributed to any taxable service. 3. The learned AR supported the findings of the lower authorities and submitted that in the absence of detailed accounts maintained by the appellant ....