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“During this long period of silence, the petitioner/assessee was entitled to proceed on the reasonable belief that the matter had attained finality and reopening it after nearly a decade frustrates legitimate expectations.”
Section 67 of the Finance Act, 1994 takes care of the cases where the service provider receives any part of a consideration in non-monetary form or by way of reimbursement and that such item does not figure in the invoices raised, thereby resulting in the real value of taxable service.
“Mere entries in income tax returns or Form 26AS cannot, by themselves, establish liability under the Finance Act, 1994, unless corroborated by evidence demonstrating rendition of taxable service.”
A settlement of dispute is clearly not an agreement to tolerate any act or situation. It is beyond the scope of Section 66-E(e) of the Finance Act, 1994 and thus not a ‘declared service’.
The Adjudication Authority stated that the appellant’s activity of receiving income from transferring temporarily or permitting the use of the right vested in the film produced by them to their clients fell under the definition of copyright service under Section 65(105)(zzzt) of the Finance Act, 1994.