2017 (6) TMI 218

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..... llowed - decided in favor of appellant.
Shri S. S. Garg, Judicial Member Mr. Anand A Desai, FCA For the Appellant Mr. Mohammad Yusuf, A.R For the Respondent ORDER Per S. S. Garg The present appeal is directed against the impugned order dated 31.3.2016 passed by the Commissioner (Appeals) whereby the Commissioner (Appeals) has rejected the appeal of the appellant. 2. Briefly the facts of the case are that the appellant is registered under the service tax under banking and other financial services and is discharging the service tax under banking and financial services category since its registration. The scrutiny of the Profit and Loss Account was carried out by the Department for the period 2005-06 to 2009-10 wherein it was alleged .....

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..... trary to the provisions of the Statute and binding judicial precedents. He further submitted that in the show-cause notice, the department states that it has scrutinized the profit and loss account and comparing with the ST-3 returns calculated the service tax liability on accrual basis. The department has tried to match the profit and loss account figure with ST-3 returns figure. The learned consultant submitted that during the relevant period, i.e. 1.3.2011 for which the show-cause notice was issued, service tax was payable on receipt basis and not on accrual basis. The books of account are drawn on mercantile basis as per prudent accounting norms and accepted accounting principles. He further submitted that the adjudication made by the d .....

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..... ishikawa Co. Ltd Vs CCE Meerut [2005(188)ELT 149(SC)] 3) Ess Ess Engineering Vs CCE Chandigarh [2010-TIOL-1447 CESTAT DEL] 4) CCE Vs Ballarpur Industries Ltd [2007) 11 STT 6 (SC)] 5) Pahwaa Chemicals Vs CCE [2005(189)ELT 257 (SC)] After considering the submissions of both the parties and perusal of the material, I find that there is no suppression of facts on the part of the appellant which attracts Section 78 of the Finance Act. Appellant being a Public Sector undertaking, a Nationalized bank is subject to rules and regulations and audit as prescribed by the RBI. There was some computation error on account of discrepancies between the profit and loss account and the ST-3 returns, but the same was clarified by the Bank and thereafter .....

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