Case: M/s. Piyush Sharma v. Commissioner of CGST & CX, Patna-I [Service Tax Appeal No.75856 of 2021 dated October 17, 2023]
The CESTAT, Kolkata Bench, held that service tax demand based on Form 26 AS from the Income Tax Department without Investigation is Invalid.
Facts of the case
- The appellant has undertaken and/or rendered services to telecommunication companies in relation to erection, commissioning and installation, completion fitting-out, repair, maintenance services to telecommunication towers of those companies, which also includes execution of Civil Construction Work.
- On the basis of the information received from the Income Tax Department in the form of Form-26AS, it was found that the appellant has received an amount of Rs.1,19,67,288/- during the period from 2012-13 to 2016- 17 on which TDS is deducted by the service recipient.
- The, show cause notice was issued to the appellant for demanding service tax from the appellant. Thereafter, another demand was raised on 11.02.2020 for the period April 2017 to June 2017 on the basis of Best Judgement Method.
- The appellant contested the show cause notice, but the demand proposed in the show cause notice was confirmed against the appellant.
Held
- The appellant has contended that the demand has been raised on the basis of Form 26AS supplied by the Income Tax department.
- Although the summons was issued to the appellant and the appellant did not join the proceedings, therefore, the demand has been raised on the basis of Form 26AS.
- Being the appellant a registered service provider and filing their Service Tax returns, in those circumstances, the demand cannot be raised on the basis of Form 26AS obtained from the Income Tax Department.
- The show cause notice has been issued to the appellant by invoking extended period of limitation and some of the demand pertains to beyond five years and in this case, the demand has to be calculated in terms of Valuation Rules, 2006.
- On the basis of Form 26AS, no demand is sustainable against the appellant.