CESTAT Quashes Service Tax Demand Based Merely on Form 26AS; Renting of Residential Hostel Held Non-Taxable

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Last updated: 22 September 2026
Quick Summary
The CESTAT has quashed a service tax demand, ruling that income from renting a residential hostel is not taxable. The Tribunal found that the department wrongly used Form 26AS alone to confirm the demand, without proving the nature of the service or intent to evade tax. Trading receipts were also deemed non-taxable as they didn't fall under the definition of 'service'.

Court :
New Delhi

Brief :
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, allowed the appeal filed by Ms. Anju Makhija and set aside the service tax demand of ₹19.72 lakh along with applicable interest and penalties. The demand for the period 2013-14 to 2015-16 was primarily based on income reflected in the appellant's Income Tax Returns/Form 26AS.

Citation :
Service Tax Appeal No. 51065 of 2021

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1 Year PLAN
1999
(Excl. of GST ₹359)

BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)

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