TaxTMI 
TaxTMI 
2026 (3) TMI 1248
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....terials such as Rails of all types, Sleepers of all types for South Eastern Railways, Chhakradharpur directly. They were also rendering such services as a subcontractor of one M/s. Bhartia Infra Projects Limited for 'Rail Renewal' which involves the replacement of unserviceable rails, sleepers, and fastenings in railway tracks. During the FY 2015-16 the total income received by the appellant from 'Divisional Railway Manager, Chakradharpur' and 'Bhartia Infra Projects Limited' for such type of work was Rs.98,19,610/- [Rs. 32,31,717/- + Rs. 65,87,893/-]. The services so provided by the appellant were an essential part of the composite works contract service of replacement of unserviceable rails, sleepers, and fastenings in railway tracks provided to the Railways. Under the bona fide belief that the works contract services provided to the Railways is exempt from payment of Service Tax as per Sl. No. 14 of Notification No. 25/2012-S.T. dated 20.06.2012, no Service Tax was paid by the appellant during the said period. 2.1. Upon comparison of the figures as available in the Income Tax Returns of the appellant with that of the ST-3 Returns for the corresponding ....
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....quiry. To substantiate his above submission, reference has been drawn to the Annexure-A to the said Show Cause Notice. It is his contention that in such a scenario, the impugned Show Cause Notice, which has been issued by invoking the extended period of limitation, without conducting any independent investigation and solely relying on CBDT data, is not sustainable. In support of his above contentions, the Ld. Counsel for the appellant cited the following case-laws: - i. M/s. Nanu Shome & Co. v Commissioner of C.G.S.T & CE [Final Order No. 75084/2026 dated 20.01.2026] ii. M/s. Tabassum Enterprises v Commissioner of CGST&CX [Final Order No. 77452/2025 dated 19.09.2025] iii. M/s. Rishu Enterprise v. Commissioner of C.G.S.T. & C.Ex., Dibrugarh [Service Tax Appeal No.75509 of 2022 - CESTAT, Kolkata]. iv. 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)] v. M/s. Gopi Chenna v. Commissioner of Central Tax, Medchal - GST [Final Order No. A/3007830079/2024 dated 26.02.2024 in Service Tax Appeal No. 30412 of 2023 & anr. - CESTAT, Hyderabad] vi. M/s. Indian Machine....
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.... rendered by the appellant. I observe that the entire demand has been raised solely by relying on the CBDT Data. Therefore, the impugned demand raised and confirmed merely on the basis of CBDT Data, without the support of any independent or corroborative evidence on record is not sustainable in the eyes of law. Such mechanical reliance on Income Tax data, without verification as to the nature of service 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 demonstrating rendition of taxable service. 11. I also find that the above issue is no longer res integra and has already been settled by a catena of decisions. The said issue has been examined by this Tribunal in the case of M/s. Tabassum Enterprises v Commissioner of CGST&CX [Final Order No. 77452 of 2025 dated 19.09.2025 in Service Tax Appeal No. 75037 of 2025 - CESTAT, Kolkata], wherein, under an identical factual matrix, the demand confirmed on the basis of CBDT data without conducting any independent verification therefor to ascertain the nature of the services re....
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....and, is reproduced below: - ...... 8.2. Thus, we agree with the submission made by the appellant that the Show Cause Notice has been issued merely on the basis of the data received from the Income Tax Department, without conducting any independent enquiry, for levy of Service Tax, which is legally not sustainable. 8.3. We find that a similar view has been taken by the Tribunal in the case of M/s. Tabassum Enterprises v Commissioner of CGST&CX [Final Order No. 77452 of 2025 dated 19.09.2025 in Service Tax Appeal No. 75037 of 2025 - CESTAT, Kolkata]. The relevant portion of the said order reads as under: - ..... 8.4. The said issue has been examined by the Tribunal in the case of M/s. Rishu Enterprise v. Commissioner of C.G.S.T. & C.Ex., Dibrugarh [Service Tax Appeal No.75509 of 2022 - CESTAT, Kolkata] wherein it has been held as follows: - "8. In view of the judicial pronouncement of this Tribunal, we hold that merely on the basis of Form 26-AS issued by the Income Tax Department, the demand of Service Tax is not sustainable against the appellant. ..... 11. In view of this, we hold that the impugned demand is no....