The demand for service tax was invalid due to the lack of evidence for willful suppression or fraud, making the issuance of the show cause notice time-barred.

SANJIV SRIVASTAVA:

This appeal is directed against Order-in-Appeal No.NOI-EXCUS-001-APP-344-24-25 dated 21/02/2025 passed by Commissioner (Appeals) Central Goods & Services Tax, Noida.

By the impugned order following has been held:-

“ORDE

In view of above facts, discussion and findings, the appeal 60/ST/NOIDA/APPL/NOI/2024-25, dated 01-05-2024 filed M/s Protectwell Security Services, 27-B, Dhawalgiri Apartment, Sector-11, Noida against the Order-in-Original No. 155/AC/ST-TPI/CGST/Div-IV/Noida/ 2023-24, dated 19-12-2023 passed by the Assistant Commissioner, Central GST Division-IV, Noida is rejected and the impugned order is upheld.”

1.2 By the Order-in-Original No.155/AC/ST-TPI/CGST/Div- IV/Noida/ 2023-24, dated 19-12-2023 adjudicating authority has held has follows:-

“ORDER

“i) I confirm and order to recover Service Tax of Rs 1035930/- (Rs. Ten Lakh Thirty Five Thousand Nine Hundred and Thirty only) on M/s Protectwell Security Services, 27B, Dhawalgiri Apartment, Sector 11, Noida 201301 under Section 73 (1) of the Finance Act , 1994 read with Section 174 of the Central Goods & Services Tax Act, 2017 in relation to SCN No.486/AC/ST/Div-IV/Noida/2021 dated 21.10.2021.

ii) I order to charge and recover interest on the amount as confirmed at (i) above, as applicable under Section 75 of the Finance Act , 1994 read with Section 174 of the Central Goods & Services Tax Act, 2017 from the due date of payment of Service Tax till the actual date of payment:

iii) I impose a penalty of Rs 1035930/- (Rs. Ten Lakh Thirty Five Thousand Nine Hundred and Thirty only) on M/s Protectwell Security Services, 27B, Dhawalgiri Apartment, Sector 11, Noida 201301 under Section 78 of the Finance Act , 1994 read with Section 174 of the Central Goods & Services Tax Act. 2017:

iv) In terms of second proviso to Section 78 of the Finance Act , 1994, the taxpayer will have the benefit of reduced penalty of 25% as imposed at (lii) above, if the service tax as determined above is paid along with the applicable interest and such reduced penalty within 30 days of the receipt of this order;

(v) I impose a penalty of Rs. 10,000/- (Rupees Ten Thousand only) under the provisions of Section 77 (2) of the Finance Act , 1994 read with Section 174 of the Central Goods & Services Tax Act, 2017 for failure to correctly assess the service tax liability and discharge thereon (vi) I drop the proceedings in relation to SCN No. 483/AC/ST/Div-IV/Noida/2021 dated 21.10.2021 for reasons as discussed above.

This order is issued without prejudice to any other action that may be taken against the taxpayer under the provisions of the Finance Act , 1994 and/or the Rules framed thereunder or under the provisions of any other law for the time being in force.”

2.1 Appellant was registered with the Service Tax Department, having Service Tax Registration No. AKCPG1021HSD003 and are engaged in the providing/ receiving taxable Services under Finance Act , 1994.

2.2 As per the information received from the Income Tax Department that there is a difference of Rs. 6,906,201/- in value of services provided as shown in their income tax return/26AS and ST-3 returns filed by the party for the financial year 2016-17 (RUD-I). As per ITR information, it appears that the appellant has not paid service tax on the said differential value of services provided as detailed in table below:-

(Amount in Rupees) Year Gross Receipts Higher of 2-4 26AS ITR STR and 3-4 1 2 3 4 5 2016-2017 7,598,986 7,589,979 692,785 6,906,201

2.3 Letters dated 05.10.2021 & 12.10.2021 was send to the appellant on the registered address and was also sent by email, requesting them to furnish the details of the payment of Service Tax along with the copies of ST-3 returns, if any, filed by them.

But, no response was received from the appellant.

2.4 Accordingly, on the basis of Income Tax Data it was concluded that appellant has not paid service tax on the income received by them as reflected in their Income Tax Return. Accordingly, the liabi