2010 (12) TMI 472 - AT - Service Tax

Waiver of pre-deposit - the appellant is recording its receipts on cash basis, Revenue cannot press for accountal under merchantile basis - The pressure shall disturb the entire accounting position and there may be double taxation in future - Held that there is no statutory provision under Finance Act 1994 to follow a specific method of accounting like Income-tax under Section 145 of the Income-Tax Act, 1961 - Once an assessee opts to account for on cash basis, there is no mandate under law to press the assessee to change his method of accounting - Hence, waiver of pre-deposit of the balance demand during pendency of the appeal.

Summary

The Appellate Tribunal CESTAT, New Delhi ruled in favor of the appellant, stating that there is no statutory provision to mandate a specific method of accounting for service tax. The tribunal waived the pre-deposit of the balance demand during the appeal, emphasizing the importance of allowing the appellant to continue using the cash system of accounting to avoid double taxation in the future.