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2022 (8) TMI 63 - CESTAT KOLKATALiability of service tax - unbilled revenue amount - mobilization advance - credit balance of erection and labour charge as reflected in trial balance during the period 2012-2013 - debit balance reflected in Service Tax ledger during the period 2010-2011 &2011-2012 - HELD THAT:- The appellant is a construction company engaged in providing various taxable services as referred in para 2. Construction contracts are the contracts which run over period of time and are not limited strictly by the Financial Year - it is evident that Accounting Standard AS-7 provides for method of recognition of costs, expenses and revenues during the particular period and the manner of disclosure of the same in the book of accounts. This standard uses the word expected and recognition and would not reflect the actual realization of the revenue by the contractor against a particular project. The Service tax is paid on the basis of the revenue realized towards the provision of the taxable services and not on the basis of the revenue recognition. Impugned order do not point out a single case whereby the amounts realized by the appellant against any of the project undertaken by the appellant were not reflected in their ST-3 return. ST-3 return is based on the revenues realized by the appellant during the period of the return and not on the basis of revenue recognition. Accordingly, there are no merits in the impugned order - the entire demand is for the period of the running contracts during the period 2008 to 2012 and would have been completed by now. Revenue should reconcile the revenue realized contract wise, with the service tax return, and if there all the revenues realized either as advance or on the completion of the contract can be reconciled with the ST-3 returns then demands need to be set aside or restricted to the unexplained amounts realized and not reflected in the ST-3 return. With the above observation, the matter is remanded to the original authority for reconciliation. Appeal allowed in part and part matter on remand.
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