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TMI Blog2011 (12) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... n of gross amount included Service Tax or not, would arise. As regards Profit & Loss Account, if the appellant followed the cash accounting method, they cannot be found fault with for showing it as expenditure. In any case, it has been paid under protest and the expenditure is booked. This does not mean that what was paid before issue of Show Cause Notice was subsequently collected from the customers. - Decided in favor of assessee. - ST/296/2010 - order No. A/2155/WZB/Ahd/2011 - Dated:- 2-12-2011 - MR. B.S.V. MURTHY, J. Represented by: Shri Ghanshyam Jagetia, Proprietor: for Assessee. Shri R.Srova, A.R. for the Revenue. Per: Mr.B.S.V. Murthy: Proceedings were initiated against the appellant on the ground that the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Profit Loss Account, it was submitted that the appellants followed the cash accounting method and therefore as soon as the Service Tax was paid, it was shown as Revenue expenditure. 4. Ld.A.R. for the Revenue adopts the logic and reasoning applied by the lower authorities for rejecting the refund. 5. I have considered the submissions made by both sides. The original adjudicating authority credited the refund amount to Consumer Welfare Fund and rejected the claim of interest with the following observations: "I have perused the copies of invoices for the year 2005-2006 furnished by the said claimant and noticed that these invoices did not indicate that the Service Tax was exempt at the relevant time. I find that Section 67(2) of Fina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at on the basis of invoice, it can be concluded that the appellant had collected Service Tax. Only when Service Tax was payable and was held to be payable, the question of determination of gross amount included Service Tax or not, would arise. As regards Profit Loss Account, if the appellant followed the cash accounting method, they cannot be found fault with for showing it as expenditure. In any case, it has been paid under protest and the expenditure is booked. This does not mean that what was paid before issue of Show Cause Notice was subsequently collected from the customers. As regards interest, provisions of Section 11B of Central Excise Act, 1944 made applicable to Service Tax matters vide Section 83 of faf94 includes interest als ..... X X X X Extracts X X X X X X X X Extracts X X X X
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