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

Last updated: 04 October 2023

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