𝗖𝗘𝗦𝗧𝗔𝗧 𝗔𝗹𝗹𝗮𝗵𝗮𝗯𝗮𝗱 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗨𝘀𝗲 𝗼𝗳 𝗕𝗮𝗹𝗮𝗻𝗰𝗲 𝗦𝗵𝗲𝗲𝘁 𝗳𝗼𝗿 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗟𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆 📢 The Tribunal held: "Income reflected in the Balance Sheet is for Income Tax purposes and cannot be used to determine Service Tax liability without corroboratory evidence."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s J M Manpower & Security Pvt. Ltd. 𝗜𝘀𝘀𝘂𝗲: Whether the order passed without considering the Revised Balance Sheet for F.Y. 2009-10 is valid?

𝗣𝗿𝗼𝗰𝗲𝗲𝗱𝗶𝗻𝗴𝘀: The appellant argued that the Revised Balance Sheet for F.Y. 2009-10, duly audited, was not considered by the Adjudicating Authority.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that service tax liability cannot be determined using Balance Sheet figures without corroborating evidence, emphasizing that such financial reports are for income tax purposes. The Department's failure to prove malafide intent rendered the invocation of the extended period invalid, and the appeal was partly allowed.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s J M Manpower & Security Pvt. Ltd. vs. Commissioner of Central Excise & Service Tax, Lucknow 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼.70394 of 2023 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 30 January 2024

📜 This ruling highlights that income reported in balance sheets for income tax purposes cannot be the sole basis for determining service tax liability.