Brahmaputra Television Network Vs Union of India (Gauhati High Court)
The petitioner filed a writ petition under Article 226 of the Constitution challenging a Demand-cum-Show Cause Notice dated 26.04.2021, the Order-in-Original dated 01.03.2022, and the Order-in-Appeal dated 21.09.2023. The original proceedings resulted in confirmation of Service Tax demand, interest, and penalties, while the appellate authority dismissed the petitioner’s appeal and upheld the adjudication order.
The petitioner, engaged in providing advertising agency services, was issued a Demand-cum-Show Cause Notice alleging suppression of taxable value of services for the financial year 2015-2016. The notice proposed recovery of Service Tax of Rs. 1,34,54,383/-, interest, and penalties under Sections 77 and 78 of the Finance Act, 1994. The allegations were based on information received from the Central Board of Direct Taxes indicating that receipts reflected in the Income Tax Returns and TDS records were not fully disclosed in the ST-3 returns, resulting in alleged short payment of Service Tax.
The petitioner replied to the notice contending that its turnover comprised both taxable services and VAT-paid transactions. It stated that VAT had already been paid on part of the turnover and that imposing Service Tax on the same amount would amount to double taxation. The petitioner also claimed to have paid the tax relating to a difference noticed between the Income Tax Returns and ST-3 returns. Despite these submissions, the Adjudicating Authority confirmed the Service Tax demand, interest, and penalties. The Commissioner (Appeals) dismissed the appeal, observing that the petitioner had failed to substantiate its claims.
