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2019 (9) TMI 1516 - AT - Service TaxRenting of Immovable Property Services - short payment of Service Tax - POT Rules - N/N. 18/2011-ST dated 1.3.2011 - period 2009-10 to 2012-13 - HELD THAT:- None of the submissions as made by the Appellant has been considered by the learned Assistant Commissioner, who has failed to observe and refer to the relevant provisions of Rule 6(1) of the Service Tax Rules, as existing upto 31.03.2011 and has simply referred to the provisions which are effective from 01.04.2011 and which cannot be applied in the instant case since the amounts which have been written off as bad-debts pertained to the period prior to 01.04.2011. The learned Assistant Commissioner should have appreciated the fact that the liability under the Act upto 31.03.2011 was on cash basis i.e. Service Tax was payable only on receipt of consideration for services rendered since the language employed in the said Rule 6(1) clearly provides that Service Tax shall be paid by the 6th day/5th day of the month following the calendar month in which payments are received towards the value of taxable services. The actual amount written off as bad-debts during the period 2011-12 is ₹ 28,07,404/- out of which ₹ 25,69,660/- pertains to the unrealized consideration for rendition of taxable services during the period falling before 01.04.2011 and the balance amount of ₹ 2,37,744/- pertained to the services rendered during the Financial Year 2011-12 in view of which the same has not been claimed for reduction from the balance of opening debtors since the liability on the said amount of ₹ 2,37,744/- was payable on accrual basis unlike in case of ₹ 25,69,660/- which was required to be paid only on receipt of the said amount. Appeal allowed - decided in favor of appellant.
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