TaxTMI 
TaxTMI 
2025 (8) TMI 1398
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....rom April 2015 to June 2017 under section 73 of Finance Act, 1994, along with appropriate interest under section 75 of Finance Act, 1994 besides imposition of penalty of like amount under section 78 of Finance Act, 1994 along with other penalties and late fees, M/s Maxval Technologies Pvt Ltd is in appeal before us. To appreciate the context of the dispute, it appears necessary to delve into the facts. 2. In accordance with what appears to be a practice in vogue at some time, service tax authorities issued notice [show cause notice no. COMMR./Bel/SHOW CAUSE NOTICE/Maxval/68/20-21 dated 18th December 2020] for recovery of Rs. 7,19,54,820 erected upon information received from income tax authorities that return for 2015-16 reported receipt....
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....ance Act, 1994 and, having determined that the activity was that of 'secondment of personnel' as well as 'provision of space', applied Place of Provision of Service Rules, 2011 to conclude that these were not exports and consequently liable to tax for having been provided in the taxable territory. 4. According to Learned Counsel for the appellant, scope for provision of space to any entity, let alone an overseas entity, was not tenable under the scheme of Software Technologies Parks of India (STPI) scheme, as enunciated in the Foreign Trade Policy (FTP) and the consideration, being determined on costing of employees deployed in the software support system for the overseas client could not be basis for presuming that the activity amounted....
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....ould also have been sought for clothing the demand with integrity and certainty. Recourse to section 72 of Finance Act, 1994, intended for assessment in the normal course, is independent of section 73 of Finance Act, 1994. The certainty that was expected in determination of tax not paid/short paid under section 73 of Finance Act, 1994 is lacking in the computation for 2015-16 to 2016-17. Several decisions of the Tribunal have held that show cause notice issued solely on the proposal to tax the difference between the returns under Income-tax Act, 1961 and the value of the taxable service in Finance Act, 1994 are not sustainable and, in Sarosh Homi Forbs v. Commissioner of Central Goods and Service Tax, Mumbai in final order [no. 85324/2025 d....
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.... later on confirmed by the Hon'ble High Court of Judicature at Allahabad by dismissing the appeal of the department against the said order as reported in 2019 (22) G.S.T.L. J166 (All.); Commissioner vs. Sharma Fabricators & Erectors Pvt. Ltd. Therefore, in the present case also, the demand cannot sustain.' 7. It is also seen that the demand was certainly fastened on evaluation of the response given of the noticee. For all practical purposes, an entirely new proceedings came into being during adjudication of a sketchy and tentative notice and without having placed the appellant on notice of intention to levy tax by discard of the activity as exports. This is clear breach of principles of natural justice inasmuch the detriment to the asses....