Shree Venkatesh Films Private Limited Vs Commissioner of CGST & Central Excise (CESTAT Kolkata)
CESTAT Kolkata held that demand of service tax under Reverse Charge Mechanism [RCM] raised merely on the basis of figures appearing in Balance Sheet without classifying the category of service is not sustainable.
Facts- The appellant is a media and entertainment production and distribution company headquartered in Kolkata, West Bengal. The appellant operates in 3 segments namely, film division, television division and digital cinema division for, inter alia, providing services, such as, copyright services, programme producer services, video tape production services and business auxiliary services. The appellant is in appeal against the impugned order wherein the demand of service tax has been confirmed under reverse charge mechanism and the cenvat credit has been denied on various issues and penalty was also imposed on the appellant.
Conclusion- CESTAT, Chandigarh in the case of M/s. Indian Machine Tools Manufacturers Association vs The Commissioner of Central Excise, Panchkula has held that it is not open for the Department to raise demands on the basis of other statutory returns like Income Tax Returns or balance sheets without proving that such service has been rendered by the assessee and consideration thereof has been received. Similarly, no service tax demand can be raised and confirmed on the basis of notional income.
