𝗖𝗘𝗦𝗧𝗔𝗧 𝗛𝘆𝗱𝗲𝗿𝗮𝗯𝗮𝗱 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗮𝗻𝗱 𝗦𝘁𝗮𝘁𝘂𝘁𝗼𝗿𝘆 𝗥𝗲𝗰𝗼𝗿𝗱𝘀 📢 The Tribunal ruled:

"Demand of service tax cannot be confirmed merely based on figures in statutory records; the Department must prove the service was rendered."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀: M/s GopiChenna and M/s SIS Teleservices Pvt Ltd 𝗜𝘀𝘀𝘂𝗲 𝗥𝗮𝗶𝘀𝗲𝗱: M/s GopiChenna faced a demand for service tax based on income shown in the Balance Sheet and ITRs, while M/s SIS Teleservices Pvt Ltd was accused of discrepancies between Form 26AS and ITR/ST-3 Returns. The demands were confirmed.

⚖️ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Tribunal ruled that the Department must logically connect the service provider, service rendered, recipient, and consideration to confirm the demand. Without this, service tax cannot be confirmed solely on the basis of figures from statutory records. Consequently, the appeals were allowed.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s GopiChenna and M/s SIS Teleservices Pvt Ltd vs. Commissioner of Central Tax Medchal – GST and Commissioner of Central Tax Secunderabad – GST 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 30412 of 2023 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 26 February 2024

This decision reinforces that service tax demands cannot rely solely on figures from financial documents without proving the actual provision of services.