Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2014 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 973 - AT - Service TaxWaiver of pre deposit - Business Auxiliary Service - realization of money due - book adjustment by the client would amount to receipt of consideration or not - there was opening dues from AASL to IAL amounting to ₹ 134.53 crores. By Mar 2007 this amount increased to ₹ 306.75 crores. This is the reason why the appellant is contesting that they have not realised the monies due from AASL - Held that:- explanation in section 67 of Finance Act, 1994 defining value of taxable services inserted with effect from 18-4-2006 - There is no such clear provision for period prior to 18-4-2006. But when money is deducted by one person from amounts due to another in the hands of the former and such adjustments are agreed upon, it is to be considered that payment has been made by the latter to the former. In the instant case IAL was receiving payments through the mechanism of deduction from amounts due to AAIL in the hands of IAL. The fact that the operations of AAIL resulted in loss and the losses were absorbed by IAL cannot negate the fact that at the time of rendering the services consideration thereon was received. So we are not in prima facie, agreement with the argument that IAL had not received payment for services rendered. Considering the fact that the appellant is a national carrier under the ownership of Government of India presently facing serious financial difficulties and in view of the overall appreciation of the issues involved as analyzed above - unconditional stay granted.
|