CESTAT says gross receipts alone do not prove service tax liability
In short
CESTAT ruled that showing gross receipts in CBDT data was not enough by itself to prove a service tax demand. The order says income tax records alone could not establish liability.
This matters for taxpayers facing service tax notices based only on receipts data.
What the reporting says
CESTAT held that a service tax demand could not be sustained merely because gross receipts appeared in CBDT data. The order says disclosure of receipts in income tax records was not enough by itself to establish liability.
Why it matters
CESTAT found that a service tax demand could not be sustained just because gross receipts were reflected in CBDT data. The ruling limits the use of income-tax receipt records as sole proof of service tax liability.