Case Details: Aneri Construction Pvt. Ltd. Versus Commissioner of Central Excise and Service Tax, Surat-II (2025) 30 Centax 266 (Tri.-Ahmd)
Judiciary and Counsel Details
- Dr. Ajaya Krishna Vishvesha, Member (J)
- Shri Purvin Y. Shah, Chartered Accountant, for the Appellant.
- Shri P. Ganesan, Superintendent (AR), for the Respondent.
Facts of the Case
The appellant challenged a service tax demand of Rs. 16,32,163/- alleged to arise from under-reporting of taxable service value by Rs. 1,32,05,204/-. The demand was based solely on discrepancies between the appellant’s sales register and the TDS data reflected in Form 26AS, generated under the Income Tax Act, 1961. The Department alleged short payment of service tax as per these figures. The appellant contended that Form 26AS is a report prepared under income tax provisions and cannot be treated as conclusive or sole evidence for service tax demand.
CESTAT Held
The CESTAT observed that Income Tax and Service Tax are distinct special statutes with independent provisions and spheres of operation. It emphasised that Form 26AS, being a byproduct of TDS returns under the Income Tax Act, cannot be used as the sole basis for raising service tax demands. The Tribunal noted the Department failed to produce independent corroborative evidence to establish the appellant’s service tax liability.
Citing precedents including Shri Kankeshwari Enterprise v. Commissioner of Central Excise and Service Tax, Bhavnagar and Shresth Leasing and Finance Ltd v. Commissioner of Central Excise and Service Tax, Surat, the Tribunal held that service tax liability must be determined on independent inquiry, not merely on income tax statements or Form 26AS data. The matter was remanded to the first adjudicating authority for fresh assessment independent of Form 26AS, which may only be used for corroboration purposes.
List of Cases Cited
- Kush Constructions v. Commissioner — 2019 (24) G.S.T.L. 606 (Tribunal) — Relied on [Para 4.5]
- Quest Engineers & Consultant Pvt. Ltd. v. Commissioner — 2022 (58) G.S.T.L. 345 (Tribunal) — Relied on [Para 4.4]
- Shree Kankeshwari Enterprise v. Commissioner — (2023) 9 Centax 77 (Tri. – Ahmd.) — Relied on [Para 4.2]
- Shresth Leasing & Finance Ltd. v. Commissioner — 2023 (68) G.S.T.L. 143 (Tri. – Ahmd.) = (2022) 1 Centax 64 (Tri.-Ahmd) — Relied on [Para 4.3]
