9911796707
TMI Blog2011 (2) TMI 224X X X X Extracts X X X X X X X X Extracts X X X X ..... shown in Profit & Loss Account and therefore, a letter was issued to them on 10-3-2006 requesting them to produce a copy of balance sheet with Profit & Loss Account for the year 2004-05 and later on requested to submit the bifurcated figures. The appellants submitted the copies of balance sheet for the year 2004-05 and also produced the bifurcated figures along with the certificate from a Chartered Accountant. On verification of the same, it was observed that there was a difference in value as compared with ST-3 returns filed with the department and therefore there was short payment of Service Tax amounting to Rs. 1,05,494 for the period April 2004 to March 2005. The appellants vide their letter dated 30-11-2006, informed that they had paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to know that the value shown in Profit & Loss Account and value shown in ST-3 return was different after making detailed calculation. He also submits that the observations in the show-cause notice that the appellant was communicated on it found that there was a discrepancy in the Profit & Loss Account and ST-3 return could not have been proved since on 10-3-2006, the appellant was asked to produce document, but no intimation or communication was there stating that there was a difference between the value of service provided in Profit & Loss Account and ST-3 return. The very fact that the appellant submitted the Profit & Loss Account within a week and thereafter within 5 months made detailed calculation, found out Service Tax payable and pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional evidence. 5. I have considered the submissions made by both sides. The very fact that the Profit & Loss Account reflected full amount and there was a difference between ST-3 return and Profit & Loss Account, would go in favour of the appellant as far as reasonable cause is concerned. This is further strengthened by the fact that the appellant did not challenge the demand for Service Tax and interest and wanted to end the litigation by paying the tax with interest. Obviously, the appellant felt that in view of the provisions of section 73 of Finance Act, 1994, which provide that once the Service Tax with interest is paid in full, no show-cause notice shall be issued and hence there would be no further proceedings. It is also noticed t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
