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2019 (3) TMI 36 - AT - Service TaxEvasion of service tax - Sale of Space and Time for Advertisement - Advertising Agency Services - scrutiny of their profit and loss account revealed that they have received more consideration from their client which was not reflected in their Service Tax Return during the relevant period - Held that:- The entire case of the Revenue is based upon the comparison of figures as reflected in Profit and loss Account and Service Tax Returns. There is no further evidence to show that the appellant had provided the services in question. In the absence of any evidence reflecting upon the fact that the appellant have provided services and have received consideration that the same which was not included in STR returns, the demand raised on that basis is unsustainable as per the settled law. The allegations are being made by the Revenue and onus to prove the same is also on the Revenue - in the instant case there is no investigation to show as to whom the said services have been provided; that when the same were provided, who paid the consideration for the same and when the invoice was raised. In the absence of any such evidence, the demands are unsustainable. The Hon’ble Madras High Court decision in the case of M/s Firm Foundations & Housing Pvt. Ltd. V/s Principal Commissioner, Chennai, [2018 (4) TMI 613 - MADRAS HIGH COURT], has dealt with an identical issue and held that Revenue’s reliance on profit & loss account to include with amount reflected their in having been offered for service tax are irrelevant for the purpose of determination of tax and is based upon the impugned assessment which are erroneous. Appeal allowed - decided in favor of appellant.
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