{"id":4094,"date":"2025-05-29T15:13:53","date_gmt":"2025-05-29T09:43:53","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=4094"},"modified":"2025-05-29T15:13:53","modified_gmt":"2025-05-29T09:43:53","slug":"form-26as-alone-cant-justify-service-tax-demand-cestat","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/form-26as-alone-cant-justify-service-tax-demand-cestat","title":{"rendered":"Form 26AS Alone Can\u2019t Justify Service Tax Demand | CESTAT"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/excise-service-tax\/101010000000398659\/form-26as-generated-under-income-tax-act-cannot-be-sole-basis-for-service-tax-demand-cestat\">Aneri Construction Pvt. Ltd. Versus Commissioner of Central Excise and Service Tax, Surat-II (2025) 30 Centax 266 (Tri.-Ahmd)<\/a>\r\n<\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>Dr. Ajaya Krishna Vishvesha<\/strong>, Member (J)<\/li>\n<li><strong>Shri Purvin Y. Shah<\/strong>, Chartered Accountant, for the Appellant.<\/li>\n<li><strong>Shri P. Ganesan<\/strong>, Superintendent (AR), for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>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\u2019s 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.<\/p>\n<h2><em>CESTAT Held<\/em><\/h2>\n<p>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\u2019s service tax liability.<\/p>\n<p>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.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2019%20(24)%20G.S.T.L.%20606%20(Tribunal)&amp;itemType=AP\">Kush Constructions v. Commissioner<\/a> \u2014 2019 (24) G.S.T.L. 606 (Tribunal) \u2014 Relied on [Para 4.5]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2022%20(58)%20G.S.T.L.%20345%20(Tribunal)&amp;itemType=AP\">Quest Engineers &amp; Consultant Pvt. Ltd. v. Commissioner<\/a> \u2014 2022 (58) G.S.T.L. 345 (Tribunal) \u2014 Relied on [Para 4.4]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=(2023)%209%20Centax%2077%20(Tri.%20%E2%80%93%20Ahmd.)&amp;itemType=AP\">Shree Kankeshwari Enterprise v. Commissioner<\/a> \u2014 (2023) 9 Centax 77 (Tri. \u2013 Ahmd.) \u2014 Relied on [Para 4.2]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2023%20(68)%20G.S.T.L.%20143%20(Tri.%20-%20Ahmd.)&amp;itemType=AP\">Shresth Leasing &amp; Finance Ltd. v. Commissioner<\/a> \u2014 2023 (68) G.S.T.L. 143 (Tri. &#8211; Ahmd.) = (2022) 1 Centax 64 (Tri.-Ahmd) \u2014 Relied on [Para 4.3]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Aneri Construction Pvt. Ltd. Versus Commissioner of Central Excise and&hellip;<\/p>\n","protected":false},"author":8,"featured_media":4103,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,51,63],"tags":[],"class_list":["post-4094","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-excise-service-tax","category-news-excise-service-tax","category-est-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Form 26AS Alone Can\u2019t Justify Service Tax Demand | CESTAT<\/title>\n<meta name=\"description\" content=\"CESTAT quashes \u20b916.32 lakh service tax demand based solely on Form 26AS TDS data, remanding the case for fresh assessment backed by independent evidence.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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