TMI Blog2016 (9) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... ance Act,1994 – Held that: - When the Balance sheet entries and the value as reflected in ST-3 returns are based upon different accounting system, and when the entire value stands reflected in the balance sheet, the difference in the value of services cannot be attributed to any malafide on the part of the assessee. The appellant, by agreeing to the audit view deposited the tax immediately when ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ategory of Authorised services station and Business Auxiliary Services . They were duly filing the ST-3 returns and were discharging their service tax liability accordingly. 3. As per the audit conducted in their unit, it came to notice that the value of services, as reflected in their Balance sheet, profit and loss account is more than the taxable value reflected in the ST-3 return during t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the original adjudicating authority was challenged by the assessee as also by Revenue before Commissioner (A) whereas the assessee challenged the imposition of penalty, by taking shelter under provisions of the section 80 of the Finance Act. Revenue pleaded for enhancement of the penalty on the grounds that no penalty was deposited by the assessee along with deposit of duty and interest and as su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and as such have to take into consideration all income, whether actually received in the present financial year or to be received in the next financial year. The service tax liability is required to be discharged only when the consideration for taxable services is actually received. As such the contention that income shown in the profit and loss account and the balance sheet will never match with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued to them. As such I find no justifiable reasons to invoke provisions of either section 78 or section 76 of the Finance Act, which relates to imposition of penalties in case of malafides. 9. Accordingly, while upholding the demand having been paid by the assessee along with interest, I set aside the imposition of penalties and allow both the appeals to that extent. [ Pronounced in the op ..... X X X X Extracts X X X X X X X X Extracts X X X X
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