TMI Blog2008 (9) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... e to service tax was not mindfully examined. It appears, the entire amount shown as accruals of income in the audited accounts of the assessee for the relevant period were included in the taxable value for levy of service tax - Assessee’s appeal is allowed by way of remand - Department is, of course, at liberty to demand tax from the assessee after the latter has collected the payments from their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the lower authority overlooked the fact that a major part of the demand of service tax was on accrued income taken from the balance sheets for the relevant period. In this application, the appellants plead that service tax is not leviable on the payments due to, and not received by, them. In support of this plea, they have cited Rule 6(1) of the Service Tax Rules, 1994. Today, their consulta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered. We have heard the learned Jt. CDR also, who is also fairly of the view that, in the above nature of the case, a remand is inevitable. We appreciate this view. 2. It is abundantly clear from the impugned order that the question whether any amount not actually realized by the service-provider from his customer was exigible to service tax was not mindfully examined. It appears, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g its mind to all aspects of the dispute. It is settled law that service tax cannot be levied on amounts due from customers for a given period. It can be levied only on amounts actually realized. The Department is, of course, at liberty to demand tax from the assessee after the latter has collected the payments from their customers, but subject to limitation. This legal position is abundantly clea ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
