2026 (2) TMI 671

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....ppellant is before the Tribunal. 2. The Appellant submits that they have been providing 'Works Contract Service' for which they are also eligible for abatement for the materials used. They also claimed that being a proprietorship firm, 50% of the tax liability, if any, is required to be paid by the recipient of the service on RCM basis. He further submits that the entire demand is hit by time bar. The basis for issue of Show Cause Notice is 26AS of Income Tax Returns filed in 2014-15 for which the Show Cause Notice has been issued after a huge delay in 2019 without undertaking any verification/investigation of the work undertaken by the Appellant. In view of these submissions, he prays that the Appeal may be allowed. 3. The Ld.AR for ....

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....t 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 view, I rely upon the decision in the case of M/s. Rishu Enterprise vs Commissioner of C.G.S.T. & Excise, Dibrugarh, in Final Order No. 75177 of 2024 dated 08.02.2024 in Service Tax Appeal No. 75509 of 2022 [CESTAT, Kolkata], wherein this Tribunal has observed as under: - "8. In view of the judicial pronouncement of this Tribunal, we hold that merely on the basis of Fo....

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....bliged to prove the provision of a particular service to demand service tax and further, the Appellants could not explain that the difference satisfactorily. I find that this is not the correct approach; exigibility to service tax depends on the service provider, service rendered, service recipient and the consideration thereof. Unless these four elements have been connected logically, demand of service tax cannot be confirmed merely on the basis of figures reflected in other statutory records." 5.4. Further, in the case of 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], the Tribu....