TaxTMI 
TaxTMI 
2025 (9) TMI 873
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....rtment under the category of Goods Transport Agency Service. 1.1. Based on difference between ITR and ST-3 Return for the period 2015-16 and 2016-17 and pro-rate basis figures for April, 2017 to June, 2017 a Show Cause Notice under C No. V(15)70/SE/Adjn/BHWN/CGST&CX/KS/2020- 21/2483 dated 30.12.2020 was issued to the appellant demanding service tax of Rs. 15,90,450/- along with interest and equal amount of penalty under Section 78 of the Finance Act, 1994. 1.2. On adjudication, the Ld. adjudicating authority confirmed the demand of service tax raised in the Notice along with interest and imposed equal amount of tax as penalty. 1.3. On appeal, the Commissioner (Appeals-I) vide Appeal Order No. 362/ST-Kol/ST/Kol-S/2024-25 dated 24.09....
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.... Hyderabad] iv. M/s. Indian Machine Tools Manufacturers Association v. The Commissioner of C.Ex., Panchkula [Final Order No. 60403 of 2023 dated 18.09.2023 in Service Tax Appeal No. 4174 of 2012 - CESTAT, Chandigarh] v. M/s. Forward Resources Pvt. Ltd. v. Commissioner of C.Ex. & S.T., Surat-I [2023 (69) G.S.T.L. 76 (Tri. - Ahmd.)] 2.1. The appellant further submits that they were rendering the service of arranging transportation of goods. They did not issue any consignment note. The appellant submits that the service of transportation of goods by road is liable to service tax under the category of GTA service, only when the service provider issues 'consignment notes'. As they have not issued any 'consignment....
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.... sides and perused the appeal documents. 5. I find that the present demand has been raised and confirmed on the basis of data provided by the Central Board of Direct Taxes (CBDT). It is observed that the said demand has been confirmed without the support of any independent or corroborative evidence from the Service Tax records. Such mechanical reliance on Income Tax data, without verification of the nature of receipts or proof of taxable services rendered, is impermissible in law. It is a settled legal position that mere entries in income tax returns or Form 26AS cannot, by themselves, establish liability under the Finance Act, 1994, unless corroborated by evidence demonstrating rendition of taxable service. 5.1. In support of this vi....
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....ice is received or not. Thus, we find that the whole basis of show cause notice is incorrect and/or misconceived." 5.3. In this regard, I also find it pertinent to refer to the decision rendered in the case of M/s. Gopi Chenna v. Commissioner of Central Tax, Medchal - GST [Final Order No. A/30078-30079/2024 dated 26.02.2024 in Service Tax Appeal No. 30412 of 2023 & anr. - CESTAT, Hyderabad], wherein a similar view has been expressed by the Tribunal at Hyderabad. The relevant observation of the Tribunal in the aforesaid case is reproduced below: - "7. On going through the records of the case, it is clear that the cases are made on the basis of third party data i.e., amounts reflected in Income Tax Returns and in Form 26AS. Revenu....
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....ike Income Tax Returns or balance sheets without proving that such service has been rendered by the assessee and consideration thereof has been received. Similarly, no service tax demand can be raised and confirmed on the basis of notional income." (Emphasis supplied) 5.5. I also refer to the decision of the Tribunal, Ahmedabad in the case of M/s. Forward Resources Pvt. Ltd. v. Commissioner of C.Ex. & S.T., Surat-I [2023 (69) G.S.T.L. 76 (Tri. - Ahmd.)], wherein a similar issue has been examined by the Tribunal. The relevant observations of the Tribunal in the aforesaid case are reproduced below: - "5.6 We also find that in the present matter for confirmation of service tax demand Ld. Commissioner also relies upon the TDS/26A....
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....rvice provider issues 'consignment notes'. As the appellant have not issued any 'consignment note, I hold that' the service rendered by them were clearly excluded, as the said services were covered in the 'Negative List' Entry under Section 66D(P)(i)(A) of Finance Act, 1994. I find that this view is supported by the judgment of Hon'ble Apex court in the case of CCE, Ahmedabad-II v Chartered Logistics Ltd. [(2024) 16 Centac 474 (SC)]. For ready reference, the relevant portion of the said decision, is reproduced below: 6.1. Thus, by relying on the ratio of the decision cited supra, I hold that the demand confirmed in the impugned order is not sustainable. As the demand of service tax is not sustainable, I hold that ....