2006 (9) TMI 31

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..... n terms of the Income-tax Act, they have to show the gross receipts as per the Income-tax Returns, while in the case of Service tax, the Service tax is payable on the gross receipts received by them. 2.The Asst. Commissioner after due verification found that the amount shown in the Income-tax returns had not been received by the assessee and therefore, the taxable amounts shown in the Profit and Loss Account have not been realised, hence the assessee is not liable to pay Service Tax on the amounts still due from the parties and hence, he dropped the proceedings. The Commissioner in his Review Order noted the Board's Circular No. 341/43/96/TRU, dated 31-10-1996 and has shown in the table all amounts which are found in the Profit and Los .....

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..... ied in the cited case of BPL Ltd. The findings recorded in Para 2 is reproduced herein below : 2.We have heard both sides in the matter and have perused the records. T. Velu Pillai & Co., Chartered Accountants have issued certificate based on the verification of books of account of the appellant company, that till date the appellant did not receive payments towards the debit notes raised for various engineering services provided to M/s. B.S. Refrigerators Ltd., and M/s. B.S. Appliance Ltd., Bangalore. The appellants had been filing returns regularly and informing the department about the outstanding debit notes due to them. There is no dispute about this fact about the appellants not having received the services amounts including the tax f .....

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..... received the payments towards the value of taxable service. The appellants have been filing returns and informing the department about the non-receipt of the value of services rendered by their customers and about the non-payment of the same. The department is aware of these facts as the returns have been filed. Therefore, the issue of show cause notice beyond the period of one year is barred by time. For the reasons stated above, the appeal is thus allowed with consequential relief if any. 5.1The appellant's contention is required to be accepted. The order passed by the Asst. Commissioner is correct and the same is upheld. The impugned order is not just and proper and hence, the appeal is allowed with consequential relief, if any. ( .....

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