Travel Agency Claims Record Loss in Fire: Patna HC Confirms ₹25 Lakh Service Tax Demand for Non-Cooperation

The Patna High Court upheld a ₹1.8 crore service tax demand against a travel agency that failed to substantiate its record-loss-in-fire claim. The agency couldn't produce alternate records or fire department reports to support its destruction claim during assessment. The court noted consistent non-cooperation - the assessee missed multiple hearings and failed to provide bank statements or client contracts. This reinforces that taxpayers must actively participate in proceedings and maintain basic documentation. The judgment serves as a cautionary tale for businesses relying on blanket destruction claims without supporting evidence. While acknowledging fires can destroy records, the court emphasized that statutory obligations don't disappear - taxpayers must reconstruct documents where possible or face consequences.