Service Tax Demand cannot be raised merely based on investigation conducted by Income Tax Authorities

J.P. Iscon Pvt Ltd Vs C.C.E. (CESTAT Ahmedabad) CESTAT finds that in the present case the Revenue has raised the Service tax demand merely on the ground of investigation conducted by the Income Tax Authorities. We find that demand cannot be raised merely on the basis of assessment made by the Income Tax Authorities. Tribunal in the case of Ravi Foods Pvt. Ltd. v. C.C.E., Hyderabad – 2011 (266) E.L.T. 399 (Tri.-Bang.) has held that admission by assessee to Income Tax department as regards undisclosed/suppressed sales turnover cannot be held to be on account of clandestine removal of their...