Order Date – 26 February 2024

Parties: M/s GopiChenna and M/s SIS Teleservices Pvt Ltd,  Vs Commissioner of Central Tax Medchal – GST and Commissioner of Central Tax Secunderabad – GST

Facts –

• The Appellant, M/s GopiChenna, was served with a show cause notice demanding service tax on the basis of the income from sale of service shown in the Balance Sheet and the ITR Returns. The Appellant, M/s SIS Teleservices Pvt Ltd was served with a show cause notice alleging that there is a difference between statement 26AS and the ITRs/ST3 Returns filed.
• The demands were confirmed.

Issue –

• Whether service tax can be demanded on the basis of amounts reflected in Income Tax Returns and in Form 26AS?

Order –

• The Tribunal observed that exigibility to service tax depends on the service provider, service rendered, service recipient and the consideration thereof. Unless these four elements have been connected logically, demand of service tax cannot be confirmed merely on the basis of figures reflected in other statutory records.
• Be it pre or post-Negative List regime, the Department is under obligation to prove that the Appellants have rendered such and such service and to such and such persons and that the consideration was received towards the rendering of such service. Without  doing the same, demand merely on the basis of figures does not survive.
• Hence the appeal is allowed.