TaxTMI 
TaxTMI 
2025 (11) TMI 371
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....Ed. Cess& H.& S. Ed. Cess) (Rupees Two Lakhs Eighty Six Thousand Eight Hundred Fifty Nine Only), so deliberatively and wilfully short paid by them during the period from April, 2015 to March, 2016, should not be demanded and recovered from them under proviso to Section 73 (1) of the Finance Act, 1994; (ii) Interest, on the above amount of Service Tax, should not be demanded and recovered from them under the provisions of Section 75 of the Finance Act, 1994; (iii) Penalty should not be imposed upon them under the provisions of Section 78 of Finance Act 1994; (iv) Penalty should not be imposed upon them under Section 77(1)(c) of Finance Act 1994. (v) Penalty should not be imposed upon them under Section 77(2) of Finance Act 1994. 3. The SCN was adjudicated vide Order-In-Original dated 22.03.2023 and the demand as proposed in the SCN was confirmed along-with due interest and imposition of penalties under Sections 78 & 77 of the Finance Act, 1994. Being aggrieved, Appellant filed appeal before the First Appellate Authority and the learned Commissioner (Appeals) after allowing cum tax benefit, recomputed the Service Tax demand and passed following ....
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....ce companies stopped their Reverse Charge mechanism and also told all its insurance loss assessment surveyors not to charge Service Tax anymore. Hence, the Appellant also did not charge the service tax from the Insurance companies. The Appellant has neither charged any service tax nor received any service tax from the insurance companies and the impugned order has incorrectly applied extended period of limitation while conforming the demand. 6. The learned Departmental Representative for the Revenue has justified the impugned order and prayed that the appeal filed by the Appellant, being devoid of any merits, may be dismissed. 7. Heard both the sides and perused the appeal records. 8. I find that the impugned SCN was issued solely on the basis of the information obtained from the Income Tax authority in Form 26AS for the Financial Year 2015-16. For the sake of ready reference Para 2 of the SCN is reproduced below:- "Whereas, as per the third party data received from Income Tax Department for the Financial Year 2015-16, so received from the Anti Evasion Branch of the CGST Commissionerate vide their e-mail dated 11.02.2021 (RUD-1), difference has been observed betwe....
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.... issued without examining the books of account maintained by M/s. Sharma and were issued on the basis of presumptions about the consideration received by M/s. Sharma. The considerations taken into account for issue of Show Cause Notices was in no way near to the actual consideration received by M/s. Sharma during the relevant period which should be the basis for arriving at the assessable value. He has stated that they had elaborated before the Original Authority various reasons for discrepancies in the figures arrived at presuming the considerations received by M/s. Sharma on the basis of such TDS Certificates and the figures in the returns. He has further relied upon this Tribunal's Final Order in the case of Alpa Management Consultants P. Ltd. v. Commissioner of Service Tax, Bangalore reported in 2007 (6) S.T.R. 181 (Tri. - Bangalore). He submitted that this Tribunal in the said case has held that demands, solely based on the income-tax returns for liability of Service Tax under Finance Act, 1994 is not sustainable. In respect of appeal filed by Revenue ld. counsel for M/s. Sharma has contended that the grounds of appeal are travelling beyond the Show Cause Notice and therefore ....
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....are quoted hereunder :- [(1) The service tax shall be paid to the credit of the Central Government by the 5th of the month immediately following the calendar month in which the payments are received, towards the value of taxable services : Provided that where the assessee is an individual or proprietary firm or partnership firm, the service tax shall be paid to the credit of the Central Government by the 5th of the month immediately following the quarter in which the payments are received towards the value of taxable services: Provided further that notwithstanding the time of receipt of payment towards the value of services, no service tax shall be payable for the part of whole of the value of services were not taxable : Provided also that the service tax on the value of taxable services received during the month of March, or the quarter ending in March, as the case may be, shall be paid to the credit of the Central Government by the 31st day of March of the calendar year.] A plain reading of the Rules make it abundantly clear that the amount payable is not an amount which is received and not an amount which may be received in future. Th....