TaxTMI 
TaxTMI 
2026 (2) TMI 784
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....that a Show Cause Notice dated 08.10.2015 was issued to the appellant alleging that during the period 2010-11 to 2011-12, the appellant had provided services classifiable under "Business Auxiliary Service" to M/s. N-Mart and hence was liable to pay Service Tax. After due process of law, the adjudicating authority confirmed the demand of Rs. 3,54,064/-. On appeal, the Commissioner (Appeals) upheld the said order. Hence, the present appeal before the Tribunal. 3. The appellant, appearing in person, submits that he was directly selling goods to third parties under a multi-level marketing (MLM) scheme. Initially, he purchased goods by paying Rs. 5,500/- and thereafter introduced four more persons who also paid Rs. 5,500/- each and purchased ....
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....g infrastructure for running an office or a business and like activities. In the present case the appellant has adopted a marketing strategy for sale of its product and has not solicited or provided any Business Support Service to the distributors. It is also relevant that the payments which have been received by the appellant is for sale of its product, namely suit length of various brands on which it has paid the applicable Sales Tax/VAT to the State Govermment. 12. It is a matter of record that the appellant has been purchasing these suit lengths of various brand and same were placed in a carry bag along with a CD containing appellants' business plan, two sets of blank distributor application forms. This combination has been....
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....Tax Appeal No.75037 of 2025) has held as under :- "5. I find that the present demand has been raised and confirmed on the basis of data provided by the Central Board of Direct Taxes (CBDT). It is observed that the said demand has been confirmed without the support of any independent or corroborative evidence from the Service Tax records. Such mechanical reliance on Income Tax data, without 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.....
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....er the value of such service is received or not. Thus, we find that the whole basis of show cause notice is incorrect and/or misconceived." "7. On going through the records of the case, it is clear that the cases are made on the basis of third party data i.e., amounts reflected in Income Tax Returns and in Form 26AS. Revenue takes the stand that in the Negative List regime, Department is not obliged 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 f....
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.....Ex. & S.T., Surat-I [2023 (69) G.S.T.L. 76 (Tri. - Ahmd.)], wherein a similar issue has been examined by the Tribunal. The relevant observations of the Tribunal in the aforesaid case are reproduced below: - "5.6 We also find that in the present matter for confirmation of service tax demand Ld. Commissioner also relies upon the TDS/26AS 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 Acts and their provisions operating in two different fields. Therefore by relying the 26AS/TDS Statement under the Service Tax Act, demand of service tax cannot be made. We also find the support from the decision of Ved ....