CESTAT Kolkata says Income Tax Receipts Alone Cannot Establish Service Tax Liability

CESTAT Kolkata allowed the appeal of a road transporter against a Service Tax demand of ₹3.03 crore for FY 2015-16. The Tribunal held that transportation by road, in the absence of consignment notes establishing GTA status, fell within the Negative List under Section 66D(p)(i) of the Finance Act, 1994. It further held that receipts disclosed in Income Tax records could trigger an inquiry but could not, without independent investigation, establish the nature of taxable services or justify the extended period of limitation.