2026 (7) TMI 458

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.... Rs.6,32,102/- for the service rendered during the period 2012-13. The Show Cause Notice was issued on 20.11.2017 by invoking the extended period provisions. The Appellant submits that after going through the documentary evidence placed by the Appellant before the Commissioner(Appeals), he has dropped about Rs.3.50 Lakhs of the demand and has confirmed only the balance amount of Rs.52,335/-. The Appellant claims that the Commissioner(Appeals) has failed to consider the fact that RCM benefit is required to be given for the period October 2012 to March 2013. They have also contested that in case of 'Business Auxiliary Service' when job-work has been undertaken by them, the same would be eligible for Service Tax exemption under Notification No....

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....e 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. 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 Tribu....

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....der, 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." 7. It would also be relevant to go into the decision of other coordinate Bench on this issue : Homeopathic Medical Publishers Vs Commissioner of CGST & Central Excise FINAL ORDER NO: _86910/2025 dated 25/11/2025 "3. Learned Chartered Accountant also placed reliance on the decision of Hon'ble High Court of Gujarat in NimeshbhaiGunvantbhai Patel v. Union of India [(2024) 25 Centax 122 (Guj)] and several decisions of the Tribunal invalidating proceedings commenced with no allegation other t....

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....ther reiterated that demand notices may not be issued indiscriminately based on the difference between the ITRTDS taxable value and the taxable value in Service Tax Returns. 3. It is once again reiterated that instructions of the Board to issue show cause notices based on the difference in ITR-TDS data and service tax returns only after proper verification of facts, may be followed diligently. Pr. Chief Commissioner /Chief Commissioner (s) may devise a suitable mechanism to monitor and prevent issue of indiscriminate show cause notices. Needless to mention that in all such cases where the notices have already been issued, adjudicating authorities are expected to pass a judicious order after proper appreciation of facts and submissi....