2026 (1) TMI 707

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....6,740/- was credited to the accounts of the Appellant as ascertained in terms of Section 194C of the Income Tax Act, 1962 i.e. value for purpose of TDS. As per the Income Tax Returns, the value of sale of service was noticed by the department as Rs.89,48,142/- (taxable value) and the appellant had not taken any Service Tax registration. Thus a show cause notice dated 29 September 2021, identifying unpaid Service Tax demand of Rs. 13,42,221/- came to be issued to the appellant. The Show Cause Notice interalia besides proposing recovery of the alleged amount also sought payment of interest as leviable besides imposition of penalty on the appellant, for violation of the legal provisions. Following due process, the impugned show cause notice wa....

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....re, he was excluded from the rigors of Section 67(b) of the Finance Act. Apart from this, it is also noted that the Adjudicating Authority in its Order has recorded that the value of transport charges for transport of goods in a single goods carriage in the instant case was less than 1500, hence even otherwise exemption provided vide Clause (b) of Serial No. 21 of Notification No. 25/2012-ST dated 20th June 2012 would in any case be applicable for the appellant. 4. The Learned Counsel for the appellant further submits that the findings as recorded by the Learned Appellate Authority are also erroneous and his findings in Para 9 of the order as to state that the appellant was undertaking leasing of their dumpers/hyvas etc. to different tra....

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....and on the basis of 3rd Party information without appropriate investigation and verification of the factual position, cannot justify the levy and cannot be a sustainable ground alleging suppression of facts without any other corroborative evidence to support the said premise. 9. The appellant had in the course of arguments submitted that the entire information as culled out by the authorities on the basis of the 3rd Party data, was already published information in their statutory records. GTO unlike the GTA has however been kept away from the ambit of taxnet. Section 67E(f) of the Finance Act clearly states the rendition of service only under the circumstance when " transfer of goods by way of hiring, leasing, licencing or any such manne....

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....service rendered under a different head, without rendering meaningful reasons thereto. I further find no infirmity in the appellant not issuing any consignment notes in respect of each of the four parties concerned, as the petty contract awarded was with respect to the tonnage of the coal lifted and transported, with the pick up point and destination being fixed as per the work order. The ld appellate authority's claim to find fault with the appellant not issuing consignment notes is a classic example of overkill and not arising from a factual backdrop of the matter. 11. The present case is one clearly relating to the scope of levy of tax and the scope of exemption which was considered by the learned Adjudicating Authority by way of an a....