Maninder Singh Vs Commissioner of C.G.S.T. and Central Excise (CESTAT Kolkata)
Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata Bench, has overturned a service tax demand, along with associated interest and penalties, confirmed against appellant Maninder Singh. The Tribunal’s ruling, announced on June 20, 2025, primarily determined that a service tax demand cannot be based solely on Form 26AS information, that the tax liability rested with the service recipient under the reverse charge mechanism, and that the demand itself was time-barred.
Background of the Case
The dispute centered on allegations that Maninder Singh, a service provider engaged in transportation, had received payments for services between April 2016 and June 2017 but had not remitted the required service tax. These allegations emerged following an investigation involving the service recipient, M/s. Tata Motors Limited, and information gathered from the Income Tax Department, specifically concerning Tax Deducted at Source (TDS) entries.
Subsequently, a Show Cause Notice was issued to Maninder Singh, alleging non-payment of service tax. The notice indicated that the appellant failed to provide relevant documents, leading the tax authorities to conduct a “best judgment assessment” to ascertain the demand. This process culminated in an order confirming the service tax demand, interest, and penalties, prompting Maninder Singh to appeal to CESTAT.
