TMI Blog2024 (3) TMI 983X X X X Extracts X X X X X X X X Extracts X X X X ..... OFFICE OF THE PRINCIPAL COMMISSIONER OF SERVICE TAX [ 2018 (4) TMI 613 - MADRAS HIGH COURT] held that the reporting of income in the P L is irrelevant for the purposes of determination of service tax payable and thus the basis of the impugned assessment is erroneous. Moreover, income reflected in the Balance Sheet is for Income Tax purposes, which cannot be used for the purpose of service tax without any corroboratory evidence as also supported by M/S LUIT DEVELOPERS PRIVATE LIMITED VERSUS COMMISSIONER OF CGST CENTRAL EXCISE, DIBRUGARH [ 2022 (3) TMI 50 - CESTAT KOLKATA] . It is found that since the Appellant was filing ST-3 Returns regularly, the Department s stand that it could examine the correct facts only on going through the Balance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds Service Tax, Noida, wherein the demand of Service Tax amounting to Rs.2,07,72,259/- has been confirmed alongwith interest and equal penalty under Section 78 and penalty of Rs.10,000/- under Section 77 of the Finance Act, 1994 The Act . 2. Briefly stated, the facts of the case are that the Appellant is providing Security Agency Services. Audit was conducted and it was noticed that lesser amount was reflected in the value of taxable services shown in ST-3 Returns as compared to Revenue from operation in the Balance Sheet for the financial years 2015-16 and 2016-17. Accordingly, a Show Cause Notice SCN dated 30th March, 2021 was issued by invoking extended period of limitation for the abovementioned financial years proposing demand of servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e invoked as the Appellant was regularly filing ST-3 Returns, so the Department cannot take a stand that it is only on going through the Balance Sheets that it could examine the factual position. The learned Advocate referred to the CBEC Circular No.113/7/2009-S.T., dated 23-4-2009 vide F.No.137/158/2008-CX. 4 and CBEC Circular No.185/4/2015-ST dated 30.6.2015 vide F.No.137/314/2012 and submits that it clearly directs the Assessing Officer to effectively scrutinize the Returns at the preliminary stage as held by the Tribunal in Gannon Dunkerley Co Ltd. vs. CST(Adj) Delhi 2021 (47) G.S.T.L. 35 (Tri-Del) and Luit Developers (supra). 5. The Learned D.R. justifies and reiterates the findings of the impugned order and prays that the appeal be di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts Para 11 that, .we are of the considered opinion that it is not open for the Department to raise demands on the basis of other statutory returns like Income Tax Returns or balance sheets without proving that such service has been rendered by the assessee and consideration thereof has been received . . 9. We find that the Hon ble Calcutta High Court in Larsen Toubro vs. Assistant Commissioner, Service Tax Commissionerate, Division III, Kolkata (2023) 2 Centax 327 held that audit objections cannot be the sole criteria to invoke extended period. Since the SCN has been issued solely on the basis of the Appellant s own Records, extended period cannot be invoked. Notably, the Hon ble Punjab Haryana High Court in CCE, Ludhiana vs. Mayfair Resort ..... X X X X Extracts X X X X X X X X Extracts X X X X
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