2025 (7) TMI 640

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....ief are that the Appellant Shri Tilak Singh, Proprietor of M/s Shri Sai Financial Services is providing services under the category of 'Business Auxiliary Services'. On the basis of third party information provided by the Income Tax Department, a Show Cause Notice SCN dated 10.10.2019 was issued for the Financial Year 2014-15 to 2017-18 (upto June 2017) alleging that the Assessee has provided taxable services but have not paid the Service Tax. However, Service Tax Returns were filed much before the issuance of the SCN. The SCN proposed as to why:- (i) The Service Tax amounting to Rs. 8,77,645/- (Rs. Eight Lakhs Seventy Seven Thousand Six Hundred Forty Five only) including Edu. Cess, S & H Edu. Cess should not be demanded and recove....

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....d as proposed in the SCN was confirmed. Penalty of equal amount was also imposed under Section 78 of the Finance Act, 1994 and penalty of Rs.10,000/- each were imposed under Section 77 & 77(1)(c). Late fees of Rs.1,03,100/- was also imposed under Rule 7C of Service Tax Rules, 1993. 4. Consequently, the impugned Order-In-Appeal was passed holding as under:- (ii) Confirmation of demand of Service Tax (including Cesses) is reduced to Rs. 5,05,143/- along with interest; (ii) Penalty imposed upon the Appellant, under Section 78 of the Act, is reduced to Rs. 5,05,143/-; (iii) Penalty of Rs. 10,000/- each imposed under Sections 77(1)(c) & 77 of the Act, shall remain unchanged; and (iv) Late fee for delayed fi....

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.....00% 66381 2017-18 (Upto June'17) 688555 15.00% 103283 Total 5915643   792709 7. He also reduced the quantum of late fees from Rs.1,03,100/- to Rs.3,100/-. 8. It is the case of the Appellant that once the figures have been incorrectly taken in the SCN and the demand of Service Tax has been calculated on the incorrect figures except for the Financial Year 2016-17, this SCN is illegal and needs to be set aside. In support of his submissions. He referred to the following decisions of the Tribunal:- (i) Kalyani Sharp India V/s C.C.E., Pune [2005 (187) E.L.T. 315 (Tri. - Mumbai)] (ii) Safari Carrier V/s C.C.E. & CGST, Allahabad [F/o No.70305/2025 dated 14.05.2025 in Service Tax Appeal N....

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....a sustainable case for issue of show cause notice and that charges in the SCN have to be on the basis of books of account and records maintained by the assessee and the other admissible evidence and the transactions recorded in the books of account cannot be held to be contrary to the facts. It was further held by this Tribunal in the case of Kush Construction V/s CGST NACIN, Kanpur reported at 2019 (24) GSTL 606 (Tri.-All.) that without examining the reasons for difference in the figures reflected in Form 26AS and ST-3 returns, Revenue cannot raise demand on the basis of such difference without establishing that the entire amount received by the Appellant as reflected in the said returns and Form 26AS being consideration for services provi....