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2024 (3) TMI 11 - AT - Service TaxDemand of service tax with interest and penalty - demand sought on the basis of the income from sale of service shown in the Balance Sheet and the ITR Returns - HELD THAT:- Revenue takes the stand that in the Negative List regime, Department is not obliged to prove the provision of a particular service to demand service tax and further, the Appellants could not explain that the difference satisfactorily. I find that this is not the correct approach; exigibility to service tax depends on the service provider, service rendered, service recipient and the consideration thereof. Unless these four elements have been connected logically, demand of service tax cannot be confirmed merely on the basis of figures reflected in other statutory records. Be it pre or post-Negative List regime, the Department is under obligation to prove that the Appellants have rendered such and such service and to such and such persons and that the consideration was received towards the rendering of such service. Without doing the same, demand merely on the basis of figures does not survive. Tribunal has been continuously holding that such demands are not sustainable. Chandigarh Bench of this Tribunal in the case of M/S INDIAN MACHINE TOOLS MANUFACTURERS ASSOCIATION VERSUS THE COMMISSIONER OF CENTRAL EXCISE, PANCHKULA [2023 (9) TMI 815 - CESTAT CHANDIGARH] held it is a settled principle of law that service tax can be levied only when there is a clear identification of service provider, service recipient and consideration paid for the same. In the absence of any such evidence of the service recipient and the service provided, service tax cannot be demanded and confirmed. The Impugned Orders cannot be legally sustained - Appeal allowed.
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