2024 (9) TMI 1028

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....ue issues summons to the appellant in 2018 and called for certain documents like balance sheet, ST-3 Returns, 26AS etc; a Show Cause Notice dated 03.08.2021 was issued to the appellants demanding service tax of Rs.13,70,683/-, covering the period April 2016 to June 2017; the recovery sought was on account of difference between balance sheet and ST-3 Returns, service provided to SEZ and other operating income; the Show Cause Notice was adjudicated by the Assistant Commissioner, Central Tax, Gurugram vide Order dated 25.03.2022 confirming the demand proposed in the Show Cause Notice along with equal penalty; Commissioner (Appeals) vide impugned order dated 11.01.2023 upheld the demand of Rs.9,71,695/- and confirmed the impugned order and part....

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....t it could examine the correct facts only on going through the Balance Sheet cannot be sustained as CBEC Circular No.113/7/2009-S.T., dated 23-4- 2009 vide F.No.137/158/2008-CX. 4 and CBEC Circular No.185/4/2015-ST dated 30.6.2015 vide F.No.137/314/2012, which categorically puts duty on the assessing officer to effectively scrutinize the returns at the preliminary stage, as held in Gannon Dunkerley & Co Ltd (supra);therefore, extended period of limitation cannot be invoked. He also relies on the following cases: * Rajasthan State Road Transport Corporation - Final Order No.55363/2024 dated 19.03.2024. * M/s TVS Motors India Pvt. Ltd. - Final Order No. 70112/2022 dated 17.06.2022 (CESTAT Allahabad) * M/s GD Goenka Pvt. Ltd. - Final Ord....

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....n this count is not sustainable. As far as the last issue of levy of service tax on other "operating income" is concerned, the learned Counsel submits that it was due to the recovery of bad debts during the period November 2017 to February 2018 against bills raised during 2014-15 on which service tax has already been paid. 6. Learned Authorized Representative for the Department reiterates the findings of the impugned order. 7. Heard both sides and perused the records of the case. I find that the case is made by the Department on the ground that there is discrepancy between the figures reflected in balance sheets etc. and the service tax Returns. No effort to co-relate the income/ receipt shown in the balance sheet to any particular servic....