2026 (6) TMI 709

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....eturns filed, wherein Form 26AS showed that the Appellant had a turnover of Rs.33,41,41,361/-. The Appellant submitted before the Adjudicating authority that they are basically engaged in carrying out the sewerage. cleaning work for various Government entities which is fully exempt from payment of Service Tax. Being satisfied with the explanation given by the Appellant, the Adjudicating authority has dropped the demand of over Rs.4.82 Crores and confirmed the demand of Rs.1,63,226/-. Being aggrieved, the Appellant filed Appeal before the Tribunal. Against the dropping of the demand of Rs.4.82 Crores Revenue has not filed any Appeal. 2. The Ld.Counsel appearing on behalf of the Appellant submits that the Show Cause Notice issued on 25.04.....

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....the Income Tax Department and demand has been quantified accordingly. Factually it is seen that out of the demand of Rs.4.84 Crores, the Appellants have effectively proved that no Service Tax is payable towards the demand of Rs.4.82 Crores. 8. This Bench in several cases has held that mere reliance of 26AS for issuing of Show Cause Notice is not legally sustainable for extended period and the demand would be hit by time bar. This Tribunal in the case of Tabassum Enterprises vs. C, CGST & CX vide Final Order No.75452/2025 dated 19.09.2025 (Service 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 (CB....

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....&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 on cash/ receipt basis by the Income Tax Department for the purpose of tax deducted at source, etc. being the relevant data for Income Tax. Whereas under the Service Tax provisions, the service tax is chargeable on mercantile basis (accrual basis) on the service provided whether 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." 5.6. Following the ratio of the decisions cite....

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.... dated-12.09.2019 Dear Sir, In continuance to our previous mail compliance letter dated-12.09.2019, we have Intimated that, our organisation is registered under society registration act, 1860, vide-Regd. No-KRD 7286-254 of 96-97, dated-28.08.1996, and also registered as a charitable Trust/Scoelty u/s 12AA of the Income Tax Act, 1961, on dated 01.12.2013 and rendering Exempted Service of cleaning, sanitation & conservancy (solid waste Management activitles) as per SI.No-4 & SI.No.25(a) of Notification No.25/2012 of Service Tax. That, in the year 2007, a same type of service tax notice was issued from the o/o Superintendent(Service Tax), Bhubaneswar-I, regarding Imposition of service tax, and the same had been successfully complied a....