2026 (2) TMI 733

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....m 26AS from Income Tax Department. Based on the same, the Show Cause Notice was issued on 23/12/2020 by invoking the extended period provisions demanding Service Tax of Rs. 18,92,246/- for the year 2015-16. After due process, the Adjudicating Authority confirmed the demand. Before the Commissioner (Appeals), the appellant has filed copy of the Work Order issued by M/s. V. R. Engineering Works on 30/03/2015 wherein it is clearly stated that the Service Tax is not applicable on the part of the appellant and Service Tax is within the scope of the client who was awarded the work to the appellant. The Commissioner (Appeals) has gone through the Work Order and still has dismissed the appeals filed by the appellant. Being aggrieved, the appellant ....

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....pellant shows that they are undertaking fabrication work. Accordingly, he justifies the confirmed demand and prays that the appeal may be dismissed. 5. I have gone through the Work Order issued by V. R. Engineering Works. The same is extracted below:- 6. Being merely a job worker undertaking fabrication, the appellant can be said to entertain bonafide belief that no Service Tax liability raises on him. Moreover the Work Order itself specifies that Service Tax is not applicable on the appellant but is within the scope of the receiver of the service. Therefore, the benefits of the appellant cannot be doubted. I also observe that the Show Cause Notice has been issued after more than four years after the amount were received by the appell....

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....ce Tax is not sustainable against the appellant. ................. 11. In view of this, we hold that the impugned demand is not sustainable against the appellant on the basis of the details provided by the Income Tax Department in Form 26AS and the extended period of limitation is not invokable." 5.2. The same view has been held by the Tribunal at Allahabad in the case of M/s.Quest Engineers & Consultant Pvt. Ltd. v. Commissioner of C.G.S.T. & C.Ex., Allahabad [2022 (58) G.S.T.L. 345 (Tri. - All.)]observing as follows: - "12. ........We further find that Form No. 26AS is not a statutory document for determining the taxable turnover under the Service Tax provisions. We find that Form No. 26AS is maintained....

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....d final issue as to whether any demand can be sustained on the basis of difference between the figures of ST-3 Returns and the balance sheets, we find that it is a settled principle of law that service tax can be levied only when there is a clear identification of service provider, service recipient and consideration paid for the same. In the absence of any such evidence of the service recipient and the service provided, service tax cannot be demanded and confirmed. For this reason, we are of the considered opinion that it is not open for the Department to raise demands on the basis of other statutory returns like Income Tax Returns or balance sheets without proving that such service has been rendered by the assessee and consideration there....

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....sions cited supra, I hold that the demand of service tax confirmed in the impugned order, solely relying the data received from CBDT, without adducing corroborative evidence in support, cannot be sustained. Thus, I observe that the demand confirmed in the impugned order is liable to be set aside on this ground itself." 9. Following the ratio of the cited case law, I set aside the impugned order and allow the appeal filed by the appellant. 10. The appellant would be eligible for consequential relief, if any, as per law. (Dictated and pronounced in the open Court.) ============= Document 1 V.R. Engineering Works PREW 10 (Manufacturers of Pressure vessels, Heavy Structural Fabrications & Machining) Plot No. D13 & 14, Blo....