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TMI Blog2015 (11) TMI 1187X X X X Extracts X X X X X X X X Extracts X X X X ..... ,13,57,364/- on receipt of after the receipt the commission amount for providing the services. 2.1 The issue in the present case is what is the relevant date prescribed for payment of Service Tax when service is provided to an associate enterprise. The Order-in-Appeal refers to Section 67(4) of the Finance Act which deals with valuation of services. It was amended on 10.05.2008 to redefine gross amount charged by inclusion of clause (c) to Section 67(4) of the Finance Act, 1994. Clause (c) read as:- "gross amount charged includes ...............................................book adjustment, and any amount credited or debited, as the case may be, to any account, whether called Suspense Account or by any other name, in the books of accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant stated that proper bills were raised on the associate enterprises, the money was received through banking channels, there was no book adjustment between them and the associate enterprises and their transaction does not fall under the ambit of the said explanation under the third proviso to Rule 6(1) of the Service Tax Rules. He relied on CBEC Circular/letter D.O.F. No. 334/1/2008-TRU dated 29.02.2008, which clarifies that Service Tax is leviable on taxable services provided by the person liable to pay Service Tax even if the amount is not actually received but the amount is credited or debited in the Books of Account of the service provider. 5. The learned A.R. reiterates the findings of the Commissioner (Appeals). 6. I have car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnels. There is no book adjustment outside the scope of the invoices raised to the Associate Enterprises. The lower authorities have completely mis-interpreted the provisions of the Rules and the Act. The amount has not been credited to the appellants account. Simple recording of invoice amount as receivable in the Books of Account does not mean that there is a book adjustment in every case. If Revenues view is taken as correct, the provision of law which states that Service Tax payment is linked to the receipt of payment of service, would render Rule 6(1) meaningless. The view of lower authorities does not stand to reason and must be rejected. I hold that the demand of interest does not sustain. 8. Impugned order is set aside and appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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