CESTAT says Income Tax Data Alone Insufficient, Excludes Value of Goods from Taxable Service while quashing Service Tax Demand, Penalties

The CESTAT quashed a service tax demand, ruling that Income Tax data alone is not sufficient to calculate service tax liability. It excluded the value of goods used in rendering services, separating taxable service from supply of goods. The case highlights the need for independent verification of facts and records in cross-tax domain proceedings.