𝗖𝗘𝗦𝗧𝗔𝗧 𝗡𝗲𝘄 𝗗𝗲𝗹𝗵𝗶 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗗𝗲𝗺𝗮𝗻𝗱 𝗕𝗮𝘀𝗲𝗱 𝗼𝗻 𝗕𝗮𝗹𝗮𝗻𝗰𝗲 𝗦𝗵𝗲𝗲𝘁 𝗙𝗶𝗴𝘂𝗿𝗲𝘀 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "Service tax demand cannot be based solely on apparent differences between balance sheet figures and ST-3 returns. Calculation must be transaction-wise and invoice-wise."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: M/s. M.P. Audyogik Kendra Vikas Nigam (Indore) Ltd. 𝗜𝘀𝘀𝘂𝗲: Can service tax demand under RCM be raised solely on balance sheet discrepancies? 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The appellant provides services including renting of immovable properties, manpower supply, legal consultancy, and rent-a-cab services.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that service tax demands cannot be raised solely on discrepancies between balance sheet figures and returns. Reverse charge mechanism (RCM) demands require transaction-wise and invoice-wise calculations, which were absent. The vague and misdirected show cause notices were invalid, and the appeal was allowed, setting aside the demand.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻: 𝗧𝗶𝘁𝗹𝗲: M/s. M.P. Audyogik Kendra Vikas Nigam (Indore) Ltd. vs. Principal Commissioner of Central Goods & Service Tax and Central Excise 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 52190 of 2022 (SM) 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 26 May 2023 📜 This ruling emphasizes the need for precise and specific calculations when issuing service tax demands under RCM.