04.03.2022- Amount Reflecting In The Form 26AS Cannot Be Used For Determining Service Tax Liability Against The Assessee

The Hon’ble CESTAT, Kolkata vide its order dated 23.02.2022 in the matter of M/s Luit Developers Private Limited Vs. Commissioner of CGST & Central Excise, Dibrugarh in Service Tax Appeal No. – 75792 of 2021, held that figures reflected in the 26AS cannot be used for determining Service tax liability against the assessee.

The Appellant preferred the appeal assailing the Order-in-appeal dated 29.07.2021 passed by the Commissioner (Appeals) whereby Service tax demand of Rs. 10,17,623/- for the period April 2014  to March 2017, was confirmed against the appellant along with interest and imposition of penalty under Section 78.

Facts: –

  • The Appellant is engaged in providing the service of renting of immovable property to various tenants.
  • That based on the information received from CBIC, Delhi regarding mismatch of income reflected in the Appellant’s 26AS and ST-3 returns, a parallel investigation was initiated against the Appellant by Dibrugarh Commissionerate and GST intelligence, Guwahati.
  • The Appellant duly provided the documents as sought during the investigation by the department, and based on those documents a show cause notice 08.11.2019 was issued for non-payment of tax on RCM based on mismatch of gross income reflected in Form 26AS and ST-3 returns.
  • The appellant duly filed a reply to the aforesaid Show Cause Notice along with a CA certified reconciliation of Form 26AS & ST-3 returns however the Ld. adjudicating authority not agreeing to the submissions made confirmed the demand against the Appellant.
  • The appellant preferred an appeal against the aforesaid order of adjudicating authority before the Commissioner (Appeals), which was also dismissed vide impugned order. To read more subscribe today: www.taxo.online


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