2026-VIL-278-CESTAT-KOL-ST
  1. Home
  2. 2026-VIL-278-CESTAT-KOL-ST

SERVICE TAX CESTAT Cases

Service Tax demand based on the data received from the Income Tax Department – Demand of differential service tax along with interest and penalty – HELD - The demand confirmed solely on the basis of the data received from the Income Tax Department, without any independent corroborative evidence, is not sustainable in law. There are various judicial precedents which have held that a demand based merely on Income Tax records is unsustainable – Further, the demand was confirmed without determining the taxable value in accordance with Section 67 of the Finance Act, 1994, and without examining the applicability of exemptions and abatements claimed by the appellant. The determination of taxable value is a sine qua non for confirming any demand, and in the absence thereof, the demand is unsustainable - The demand has been raised without disclosing any clear methodology, computation sheet, or correlation with invoices or transactions. It is a settled position of law that a vague and unsubstantiated demand violates principles of natural justice - The demand confirmed over and above the self-assessed service tax paid by the appellant during the relevant period, is set aside – Further, the invocation of the extended period of limitation under Section 73(4) is wholly unjustified and unsustainable in this case, as the entire basis of the demand was drawn from the appellant's declared and audited Income Tax data, which were available in the public domain. It is a settled position of law that extended period of limitation cannot be invoked where the facts are within the knowledge of the Department or derived from statutory records. The penalty imposed under Section 77 of the Finance Act, 1994 for non-filing of returns is upheld - The appellant is eligible for the refund of the amount deposited 'under protest' during the course of investigation, subject to the appellant following the prescribed procedure for claiming the refund – The appeal is disposed of
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

Analysis of Union Budget 2026-27:
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?