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2019 (9) TMI 74 - AT - Service TaxShort payment of service tax - discharge of liability on accrual basis or on receipt basis - Point of Taxation rules - According to the Department, the Appellant had short paid service tax amounting to ₹ 1,76,429/- for the year 2007-2008, whereas according to the Appellant there is no short payment of Service Tax liability because this amount of Service Tax was discharged by the Appellant in April, 2008, since ₹ 14,27,411/- was received by the Appellant in April, 2008. HELD THAT:- It is not in dispute that prior to 1 July, 2011, the Appellant could have discharged Service Tax liability on receipt basis even though the ledger was maintained on accrual basis. If that be so, then it is clear from the financial summary referred to above submitted by the Appellant, that the short paid Service Tax demanded in the Show Cause Notice to the extent of ₹ 1,76,429/- is towards receipts issued in 2007-2008 for an amount of ₹ 14,27,411/-, which amount the Appellant received in the month of April, 2008 - The adjudicating authority has not accepted this contention of the Appellant only for the reason that the figures in the two challans do not correspond to tax liability of ₹ 1,76,429/-. The adjudicating authority committed an error in rejecting this contention of the Appellant for the reason that the tax amount mentioned in the two challans would also include that tax amount for the other amount received by the Appellant in the month April, 2008. It would have been different if the amount mentioned in the Challans was lesser than ₹ 1,76,429/- because in that case the Appellant would not have discharged the entire tax liability - The Commissioner (Appeals) completely failed to advert to this issue in the order even though the said submission was noticed by the Commissioner (Appeals) in the impugned order. There is no short payment of Service Tax for the period in issue - appeal allowed - decided in favor of appellant.
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