Service Tax Demand Cannot Rest on Freight Ledger Entries Alone: CESTAT Hyderabad

PHI Seeds Pvt Ltd Vs Commissioner of Service Tax (CESTAT Hyderabad) The appeal before CESTAT Hyderabad arose from an Order-in-Original confirming Service Tax of ₹85,38,967 along with interest and penalties against the appellant, engaged in the cultivation, processing, and sale of hybrid seeds. The demand originated from an audit that found differences between freight expenses recorded in the profit and loss account and the figures disclosed in ST-3 returns. Based on these differences, the Department alleged non-payment of Service Tax under the Reverse Charge Mechanism on freight and related ...