Case Law Details
Lord Krishna Real Infra Private Ltd. Vs Commissioner of Customs, C.E. & S.T. (CESTAT Allahabad)
In a significant judgment, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Allahabad, in the case of Lord Krishna Real Infra Private Ltd. Vs Commissioner of Customs, C.E. & S.T., has set a precedent by holding that service tax demands cannot be solely based on the information contained in Form 26AS of the Income Tax Act, 1961.
Detailed Analysis:
The case revolves around a service tax demand of Rs.8,07,86,168/- for the financial years 2012-13 to 2014-15, issued against Lord Krishna Real Infra Private Ltd., which was engaged in providing taxable services under the category of “Real State Agent Service”. The demand was based on the scrutiny of Form 26AS without considering other pertinent records or seeking explanations regarding the nature of transactions listed therein.
The tribunal observed that reliance on Form 26AS, which records transactions on a receipt basis rather than on an accrual basis, could lead to erroneous tax demands. It noted the possibility of transactions being taxed twice or of non-service transactions being incorrectly taxed. The CESTAT referred to several precedents, including cases like Synergy Audio Visual Workshop Pvt. Ltd. v CST, Bangalore and Alpha Management Consultants Pvt. Ltd. v. CST Bangalore, to support its findings.
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