TaxTMI 
TaxTMI 
TaxTMI 
2026 (2) TMI 396
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....emand and imposition of various penalties imposed by the Adjudicating authority. 5.2 During the course of filing the instant appeal the appellant has submitted a copy of their ITR-6 filed with Income Tax Department for the financial year 2016-17. On careful examination of the same the following facts emanated before the under signed; (a) The appellant is a Private Limited company incorporated on 23.05.2016. (b) IT enabled Services, BPO service Provider is their nature of business. (c) During the financial year 2016-17, their Income from operations was Rs.69,60,560/-on account of "Sale of Services". (d) During the above period they spent Rs.61,05,250/- towards "Salaries & wages". The appellant did not provide any proof regarding exemption from Service Tax on any count before the appellate authority in the instant appeal. 5.3 Considering the above, there is no doubt about the receipts of the appellant reported by the Income Tax Department and the nature of services rendered by them. The services provided by the appellant are taxable in nature as "IT enabled Services, BPO service Provider" are neither fall under the exempt....
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....Paid 1 2 3 4 5 6 2016-17 6960560/- 15.00 1044084/- 0 1044084/- 2.5 A show cause notice dated 14.10.2021 was issued to the appellant asking them, as to why:- "(i) The Service Tax amounting to Rs.1044084/- (Rupees Ten Lacs Forty Four Thousands & Eighty Four only)including Education Cess, Secondary & Higher Education Cess should not be demanded and recovered from them under proviso to Section 73(1) of the Finance Act, 1994 read with Section 142 & 174 of CGST Act, 2017. (ii) The due interest on the amount of Service Tax mentioned at (i) above should not be demanded and recovered from them under Section 75 of the Finance Act, 1994 read with Section 142 & 174 of CGST Act, 2017. (iii) Penalty should not be imposed upon them under Section 78 of the Finance Act. 1994 read with Section 142 & 174 of CGST Act, 2017 for failure to pay Service Tax & suppressing the facts and contravening provisions or rules with intent to evade payment of Service Tax. (iv) Penalty should not imposed under Section 77(1)(b) of the Finance Act, 1994 read with Section 142, Section 173 and Section 174 of CGST Act....
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....ion 77(2) of the Finance Act, 1994 read with Section 142 & 174 of CGST Act, 2017 for non filing of ST-3 returns." 2.7 Aggrieved appellant have filed appeal before Commissioner (Appeals) which has been disposed of as per the impugned order referred in para 1 above. 2.8 Aggrieved appellant have filed this appeal. 3.1 I have heard Shri Vishal Verma and Shri Ajay Kumar Jaiswal learned Counsel appearing for the appellant and Smt Chitra Srivastava learned Authorised Representative appearing for the revenue. 4.1 I have considered the impugned orders along with the submissions made in appeal and during the course of argument. 4.2 I find that in the present case, show cause notice itself admits that no amount has been received by the appellant during the period of dispute on which TDS has been deducted in terms of Section 194C, 194Ia, 194Ib, 194J, 194H and as per Forms 26AS of the appellant. The amount in respect of which demand has been made is reflected towards sale of service. In the ITR no information with regards to the nature of service or even invoices etc. has been found or relied upon to ascertain whether any services were being provided by the appellant against such....
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....n Canara Bank, Union Bank and State Bank, the total amount coming into his account during the said period is much less than his amount indicated in ITR. Authorities below have not taken into account the same. 4.4 Central Board of Indirect Taxes has issued Instruction dated 26.10.2021 to the field formations stating as follows: "2. In this regard, the undersigned is directed to inform that CBIC vide instructions dated 01.04.2021 and 23.04.2021 issued vide F. No. 137/47/2020-ST, has directed the field formations that while analysing ITR-TDS data received from Income Tax, a reconciliation statement has to be sought from the taxpayer for the difference and whether the service income earned by them for the corresponding period is attributable to any of the negative- list services specified in Section 66D of the Finance Act, 1994 or exempt from payment of Service Tax, due to any reason. IT was further reiterated that demand notices may not be issued indiscriminately based on the difference between the ITR-TDS taxable value and the taxable value in Service Tax Returns. 3. It is once again reiterated that instructions of the Board to issue show cause notices base....
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....h under Notification No. 33/2012-ST dated 20.06.2012 (iv) The demand imposed under Section 78 of the Act is not sustainable." 4.6 In the absence of any findings or determination with regards to the nature of service and the nature of receipts shown in the ITR, I do not find any merits in the demands made. 4.7 It has been constantly held that demand made just by relying upon the third party data cannot be upheld without determining other factors with regards to levy of service tax. Reliance is placed on the decision of Ahmedabad bench in case of Shresth Leasing & Finance Ltd. [2023 (68) G.S.T.L. 143 (Tri. - Ahmd.)] observing as follows: "5.8 We may also refer to the observations of the Supreme Court in the decision of Kaur & Singh v. C.C.E., New Delhi - 1997 (94) E.L.T. 289 (S.C.). It is axiomatic that a show cause notice must communicate to the addressee the specific allegation/charge and the basis for the demand of tax. The Supreme Court stated that the party to whom a show cause notice is issued must be made aware of the allegation against it and that this is a requirement of natural justice. Unless the assessee is put to such notice, he has no....
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....st for corrections Mit www.fitvedl con I www.united.com for more details. In case of discrepancy in status of PAN please contact your Assessing Officer complication detals fer TRACES can be updated in 'Profile' section. However, these changes will not be updated in PAN database as mentioned above PARTA-Detail of Tas Dedacted at Svarer Name a f Deductor PARTA-Detail TAN of Deducter Tetal Amouar Paid' Credited Total Tax Deducted" Total TES Deposited Section! Transactions Prescre Transaction Date Status GE Backing Date of Booking Remarks"# Amount Paid / Credited Tax Deducted M TDS Depasired Name a f Deductor PARTA-Detail Section! Transactions Prescre Transactions Prescre RT AL - Details of Tas Delrated at Source for ESGJ 1844 Sw. No. Name of Deslecter TAN of Dedurice Total Amount Paid / Credied Total Tas Dedacied" Total TDS Deposited Sr. No. Transaction Date Date of Beaking Remark"+ Amount Paid/Credited Tax Deducted " TDS Deposited Ne Tramsactions Prevent PART A2 - Details of Tas Dedecird all Seeree on Sally of Immovable Property ul 194LA/ TDS an Rest of Property si's 19418 / TDS en paymend to resident contrattoes and professionals u's IN....