Quashed Service Tax Demand as Calculation Sheets can’t be assumed to allege collection of Service Tax

Last updated: 04 October 2023

Save Share

Quick Summary

The CESTAT in Chandigarh has overturned a service tax demand against M/s. Pearls Buildwell Infrastructure Limited. The tribunal ruled that calculation sheets alone are not sufficient evidence to prove that service tax was collected from customers. Crucially, the company provided evidence, including customer confirmations and a lack of specific invoices showing service tax charges, demonstrating no tax was collected. Therefore, the demand was deemed unsustainable and the appeal was allowed.

Court :
CESTAT, Chandigarh

Brief :
The CESTAT, Chandigarh in the case of M/s. Pearls Buildwell Infrastructure Limited v. Commissioner of Central Excise & Service Tax, Chandigarh - I [Service Tax Appeal No. 1196 of 2011 dated September 19, 2023] set aside the demand confirmed by the Commissioner for Service tax on the basis of calculation sheet only. The Tribunal found that the appellants did not collect any service tax from their customers, substantiated by the absence of invoices and a certificate from their customer confirming this. Consequently, the Commissioner's reliance on calculation sheets to establish service tax collection was considered insufficient. As a result, the impugned order was deemed unsustainable, and the appeal was allowed. Simultaneously, the Department's appeal against the dropped demand was dismissed.

Citation :
Service Tax Appeal No. 1196 of 2011 dated September 19, 2023

Daily Limit Reached

You have reached your daily limit of 2 Free Judgements

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited Judgements Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

View all CCI PRO benefits

Already a PRO member? Login here for an ad-free experience. 07941056694

235 Views Comment Share Excise Report

Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

View Judgements

Comments