9911796707
TMI Blog2019 (5) TMI 1487X X X X Extracts X X X X X X X X Extracts X X X X ..... d a show cause notice dated 22.09.2015, making the following allegations:- "2. And whereas during the course of audit for the period October'2010 to March, 2013 conducted by the then Audit Group of the Central Excise Commissionerate, Noida and report submitted vide IAR (SAP) No.129/2013-14 on reconciliation of income figures of development and supply of content for use in telecom services and ST-3 Returns for 2012-13, it is revealed that they had shown income against the said service of Rs. 15,27,58,616/- in their trial balance but as per ST-3 Returns, they have paid Service Tax on Rs. 13,85,50,047/-. Thus, they have not paid Service Tax on the income of Rs. 1,42,08,569/- which comes to Rs. 17,56,179/-. It appears that the party deliberat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rds." 3. In the impugned order, the Original Adjudicating Authority, while dealing with the said plea of the assessee observed that the document submitted by the party revealed that there is truth in the statement of the party that they were following accounting standards prescribed by Institute of Chartered Accountants of India and notified in Companies Act. It is further found that the standards prescribed under Accounting Standard- 9 (AS-9) were followed. Accounting Standard-9 explains how to recognize income or revenue in the profit & loss account. It also gives circumstances when recognition income or revenue in the profit & loss account. It also gives circumstances when recognition of revenue can be postponed. As per accounting princ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revenue, we note that the entire case of revenue is based upon the comparison of figures, as pointed out in the balance sheet with the figures reflected in the ST-3 returns. The appellant has explained that such difference has occurred on account of the accounting system as per the Income Tax Law, which explanation, in principle, stands accepted by the lower authorities. Even then the lower authorities have gone ahead and confirmed the demand. In any case and in view of the declaration, we note that it is well settled law that no demand can be confirmed by comparing the ST-3 return figures with balance sheet figures, in the absence of any evidence to the contrary that income in the balance sheet, if excess, reflects the providing of taxab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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