2013 (2) TMI 635

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..... 94. What that is required is that both sides should make effort to reconcile with reference to receipt and disclosure in the returns of relevant year to reach to a rational conclusion in respect of the amounts of the show cause notice. If any of the part of the advance attributable to taxable service and that did not form part of returns filed subsequently that amount shall be brought to tax without escapement. Law does not permit postponement of liability because of specific provision under section 67(3) of the Finance Act - remand the matter for proper reconciliation to serve interest of justice
D.N. PANDA, JUDICIAL MEMBER AND RAKESH KUMAR, TECHNICAL MEMBER B.L. Narasimhan for the Appellant. Amresh Jain for the Respondent. ORDER D. .....

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..... of the appellant is that the advances appearing under different categories at page 7 of the show cause notice (forming part of paper book of Appeal folder No. 2211/2012), in the cause of execution of contract resulting in provision of taxable service have been adjusted to characterise the same as receipt from taxable service and that has suffered tax. But such proposition was not acceptable to Revenue in absence of proper reconciliation. That confused both the sides. But from para 3 of the show cause notice itself (Ref: page 12 of the appeal paper book of E/2212/2012) it appears that Revenue was aware that the advances were adjusted by the assessee subsequently. Revenue's only anxiety is that whether the advances giving raise to tax demand .....

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..... permit postponement of liability because of specific provision under section 67(3) of the Finance Act. To such proposition of law, appellant says that for the default, appellant shall compensate Revenue with interest. But learned Adjudicating Authority shall take appropriate decision in the matter since we propose to remand the matter for proper reconciliation to serve interest of justice and we do not express any opinion on the consequence or postponement of liability by Appellant. 6. We dispose of the stay application and send the matter back to the ld. adjudicating authority to fix the date of hearing as expeditiously as possible. As we find the reconciliation statement forming part of the paper book, it would be preferable for the reve .....

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