DK Infosolutions Pvt. Ltd. Vs Commissioner of Central Excise & CGST (CESTAT Allahabad)
The CESTAT Allahabad dismissed the appeal against Order-in-Appeal No. 221-ST/APPL/LKO/2025, thereby upholding the Order-in-Original confirming service tax, interest and penalties.
The appellant was engaged in IT-enabled services and BPO services. Based on third-party information received from the Income Tax Department for the financial year 2016-17, the Department found receipts from services and sought records including balance sheets, ST-3 returns, ledger accounts, bank statements and invoices. According to the Department, the appellant did not furnish the requested documents or file ST-3 returns for the relevant period. Consequently, a show cause notice dated 14.10.2021 proposed recovery of service tax of ₹5,22,153 along with interest and penalties under Sections 73, 75, 77 and 78 of the Finance Act, 1994. The adjudicating authority confirmed the demand, interest and penalties, and the Commissioner (Appeals) dismissed the appellant’s appeal.
Before the Tribunal, the appellant contended that the services were exempt under Serial No. 9 of Notification No. 25/2012-ST, that it had acted under a bona fide belief, and that the demand was barred by limitation since financial records were available publicly. The Revenue supported the impugned order. During the hearing, the Tribunal sought clarification regarding compliance with Rule 5 of the Service Tax Rules, 1994. The appellant later admitted that no list of records maintained on its website had been furnished to the Department as required under Rule 5.
