TaxTMI 
TaxTMI 
2025 (4) TMI 1767
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....order shall remain unchanged." 2.1 Appellant having PAN No.AJAPJ0223B. It was observed that they are providing taxable services under Chapter V of Finance Act, 1994 but he neither obtained service tax registration nor had paid any taxable services so provided. 2.2 On the basis of information received from Income Tax Department regarding gross receipt against sale of services during the Financial Year 2016-17. It was observed that appellant had provided taxable services for an amount of Rs.14,14,649/- and inquiry was initiated and appellant was requested to provide statutory/requisite documents. No response was received. Thus, appellant had short paid service tax as detailed in table below:- Financial Year Gross receipt against sale of service as in ITR Service Tax payable @ 15 % (incl. cesses) Service Tax paid as per ST-3 returns Service tax not paid 2016-17 1414649 212197 N.A. 212197 2.3 Show cause notice dated 19.10.2021 was issued to the appellant asking them to show cause as to why- "(i) Service Tax liability of Rs.212197/- (Rupees Two Lacs Twelve Thousand One Hundred Ninety Seven Only) should not be demanded and recovered from th....
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....eved appellant have filed this appeal. 3.1 I have heard Shri Kartikeya Narain learned Counsel appearing for the appellant and Shri Manish Raj 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 Impugned order records as follows:- "4.3 It is observed that the adjudicating authority in the impugned order has found that the appellant did not provide the requisite documents ie copy of ITR, Copy of P/L Account, copy of registration of coaching, copy of bills/vouchers of payment etc and therefore in absence of requisite documents no benefit of exemption/abatement was extended to the appellant and demand of service tax of Rs.2,12,197/-on consideration of Rs. 14,14,649/- was confirmed against the appellant during the period 2016-17 under proviso to Section 73(1) of the Act along with interest under Section 75 of the Act. 4.4 Here at the appellate stage the appellant has filed the appeal mainly on the ground that they were eligible for threshold exemption under Notification No. 33/2012-ST dated 20.06.2012 because their income in the l....
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.... list of services as contained in Section 66D of the Act or exempted under mega exemption notification issued by the government. Thus, the appellant is liable to pay service tax of Rs. 62.197/- on consideration of Rs. 4,14,649/- received by the appellant for the activity performed for their various clients during the period 2016-17. 4.7 I observe that under the self-assessment procedure specified in the statute, the appellant was required to assess & pay their Service Tax liability correctly. The nonpayment of Service Tax could be detected only during the course of enquiry conducted by the Department. Thus, it is a clear case of willful suppression of facts and contravention of the statutory provisions, with intent to evade payment of Service Tax. Thus, I find that extended period of limitation has been rightly invoked in this case under Section 78 of the Act. 4.8 It is observed that the adjudicating authority has also imposed penalties/fine under Section 77(1)(a), 77(1)(c), 77(2) & 70 of the Act upon the appellant in the impugned order. I find the contraventions apparent on the record and hence hold that penalties/fine imposed in the impugned order are proper and....
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.... show cause notice and the order of the lower authorities, I am constrained to observe that these orders have been made in complete non compliance of the said instruction. Form 26 AS of the appellant for the relevant period 2016-17 is reproduced below- 4.6 On perusal of the same, it is evident that appellant has not received any amounts on which TDS would have been deducted under Section 194 of the Income Tax. Further, I find that no investigation has been made in the matter to find out what exactly the amount indicated in ITR also pertain to. Not even the nature of service that has been ascertained demand has been made just by comparison of the gross receipt in the ITR with ST3 return. Even at the stage of Commissioner (Appeals) there is no finding recorded as to what was the service provided by the appellant. The demand has been confirmed just for non production of any of the documents without recording any finding with regards to nature of services. Impugned order records that appellant had challenged the order in original on the following grounds: (i) "The Adjudicating Authority cannot give any reason in his findings that except Form 26AS on which ground he assumes ....
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....lso relies upon the TDS/26As Statement/3CD Statement. The said statement under provisions of Income Tax Act, 1961 is an Annual Consolidated tax statement. Income tax and service tax are two different/separate and independent special Act and their provisions are operating in two different fields. Therefore, by relying the 26AS/TDS Statement/3CD statement under the Service Tax Act, demand of service tax cannot be made. We also find the support from the decision of M/s. Ved Security v. CCE, Ranchi-III - 2019 (6) TMI 383 CESTAT, Kolkata wherein it was held that the value of taxable services cannot be arrived at merely on the basis of the TDS statements filed by the clients inasmuch as even if the payments are not made by the client, the expenditure are booked based on which the form 26AS is filed, which cannot be considered as value of taxable services for the purpose of demand of Service tax." 4.9 In view of the above, impugned order lacks merit and the same is set aside. 5. Appeal is allowed. (Operative part of the order pronounced in open court). ============= Document 1 ANNEXURE-6 Data updated till 16-Mar-2023 TDS Centralire Processing Cell TRACES Governme....