CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL ALLAHABAD REGIONAL BENCH - COURT NO.II (Arising out of Order-in-Appeal No.NOI-EXCUS-001-APPL-396-2024-25 dated 26/03/2025 passed by Commissioner (Appeals) Central Goods & Services Tax, Noida)

M/s MVM Business Services, …..Appellant (1028, ITHUM IT Park, Sector-62, Noida)

VERSUS Commissioner of Central Excise &

CGST, Noida ….Respondent (Commissioner CGST, Noida)

APPEARANCE Request for virtual hearing, for the Appellant Shri Manish Raj, Authorised Representative for the Respondent CORAM: HON’BLE MR. SANJIV SRIVASTAVA, MEMBER (TECHNICAL)

FINAL ORDER NO.70042/2026 DATE OF HEARING : 16 January, 2026 DATE OF PRONOUNCEMENT : 20 February, 2026 SANJIV SRIVASTAVA:

This appeal is directed against Order-in-Appeal No.NOI-

EXCUS-001-APPL-396-2024-25 dated 26/03/2025 passed by Commissioner (Appeals) Central Goods & Services Tax, Noida.

By the impugned order following has been held:-

“ORDER In view of the above discussion and findings the appeal bearing No. 184/ST/NOIDA/APPL/NOI/2024-25 dated 27.08.2024 filed by M/s MVM Business Services, 1028/ITHOM IT Park, Sector-62, Noida is modified as follows:

(i) I confirm the demand of Service Tax amounting to Rs Rs.7,40,829/- not paid/ short paid by the party, on the taxable value during the period of 2015-16 & 2016-17 under the provisions of Section 73(1) of the Finance Act, 1994.

(ii) I confirm the demand of interest on the party at an applicable rates during the relevant period, on the amount of Service Tax demanded/confirmed at point (i) above, under the provisions of Section 75 of the Finance Act, 1994.

(iii) I impose penalty of Rs.7,40,829/- upon the party, under Section 78 of the Finance Act, 1994.

(iv) I impose penalty of Rs.5,000/- under Section 77(1)(d)

of the Finance Act, 1994.”

1.2 By the Order-in-Original No.106/AC/Div-II/Noida/ 2024- 25, dated 12-07-2024 Adjudicating Authority has modified the Order-in-Appeal by holding as follows:-

“ORDER (i) I confirm the demand of Service Tax amounting to Rs.8,39.001/-(Rupees Eight Lakh Thirty-Nine Thousand and One rupees Only) not paid/short paid by the party, on the taxable value during the period of 2015-16 2016-17 under the provisions of Section 73(1) of the Finance Act, 1994.

(ii) I drop the demand of Service Tax amounting to Rs.87,755/- due to exports of services made by taxpayer during the period of 2015-16 & 2016-17 under the provisions of section 73(1) of the Finance Act, 1994.

(iii) I confirm the demand of interest on the party, at an applicable rates during the relevant period, on the amount of Service Tax demanded /confirmed at point (i) above, under the provisions of Section 75 of the Finance Act, 1994.

(ii) I impose penalty of to Rs.8,39,001/-(Rupees Eight Lakh Thirty Nine Thousand and One Only) upon the party, under Section 78 of the Finance Act, 1994. If the amount as determined under Section 73 above is paid within 30 days from the date of receipt of the order along with the interest payable thereon as per Section 75. penalty will be only 25% of the service tax determined under Section 73. The benefit of reduced penalty shall be available only if the amount of penalty determined has also been paid within the period of 30 days from the receipt of the order.

(iv) I impose penalty of Rs.5000/-(Rupees Five Thousand only) under Section 77(1)(d) of Finance Act, 1994.”

2.1 At the relevant time appellant was registered with the Service Tax Department with Service Tax Registration No. AAZFM5090PSD001 and are engaged in providing/ receiving taxable Services as defined under Section 65B(44) of the Act read with Section 66D of the Finance Act, 1994.

2.2 As per the information received from the Income Tax Department and on comparison of the same to service tax return filed by the appellant following was observed:-

(Amount in Rupees)

2.3 inquiries were made vide letter dated 02.12.2022 asking to the appellant to furnish details of payment of service tax along with copies of ST-3 returns & 26AS and reason of differential val