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TMI Blog2024 (3) TMI 1103X X X X Extracts X X X X X X X X Extracts X X X X ..... te debtors (sundry debtors). Sundry debtors has been defined under Finance Act, 1994. As per normal terms sundry debtors refer to businesses, individuals or companies receiving services or products from another company or business without making the payment immediately. The payment occurs on a credit basis, where the debtors are liable to pay the money in future, i.e. the money lent to the sundry debtors is expected to return in the business financials within a short period of time. Payments on some future date to the sundry accounts are considered as fixed assets in the business. The show cause notice is based upon the scrutiny of profit and loss account for the financial year 2014-15, wherein the amounts were found recorded to be recovera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant could not have been ascertained, cannot be the ground for invoking the extended period of limitation. The primary responsibility for ensuring that the credit amount of service tax is paid, rests on the officers even in the regime of self-assessment as clarified by the CBEC in its manual for scrutiny of ST return - There is no evidence found on record proving such intent / mens rea with the appellant to evade payment of service tax. The appellant have already been held not liable to pay the amount confirmed. Resultantly the department has wrongly invoked the extended period of limitation while issuing Show Cause Notice. The impugned order is set aside - appeal allowed. - HON'BLE DR. RACHNA GUPTA, MEMBER(JUDICIAL) AND HON' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of service tax thereon to the department. These facts came to the notice of the department only after audit of the records of the assessee was conducted by the AG audit, Jaipur. Had the audit not been conducted by the AG Audit, Jaipur, the fact of providing the taxable services and non-payment of service tax thereupon would not have come to the notice of the department and the liability of Service Tax would remain unearthed. Resultantly vide show cause notice No. 3987 dated 08.12.2016 Service Tax amounting to Rs. 1,64,78,600/- was proposed to be recovered along with proportionate interest and the appropriate penalties. The said proposal has been confirmed vide Order-in-Original No. 120/2016 dated 10.02.2017. Being aggrieved the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no provision under the Act or Rules to disclose Sundry Debtors in the ST-3 Returns. Thus, the entire proceedings have been initiated without discussing the definition of Sundry Debtors / amounts realizable which are shown as fixed assets in Balance Sheet. The Appellant states that no service tax liability can be discharged or demanded on unrealized / notional income and relies upon the judicial precedent in the case of Synergy Audio Visual Workshop (P) Ltd. [2008 (10) STR 578 (Tri-Bang). The appeal is prayed to be allowed. 5. Per contra, learned Departmental Representative mentioned that there is no infirmity in the Order under challenge. The appellant is a commercially interest driven authority irrespective it is State Transport Corporatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eivable from the sundry debtors cannot be considered as value of service. Apparently, there is no provision in the Act or the Rules to be disclosed as sundry debtors in the ST 3 Returns. Hence, we hold that demand cannot be confirmed by merely appreciating the difference between the profit and loss account / balance sheet and ST 3 returns. We draw our support from the decision in the case of Synergy Audio Visual Workshop (P) Ltd. [2008 (10) STR 578 (Tri-Bang)] was also quoted in the above said decision. 5.1 The other ground is for confirming demands is that the appellants had shown certain amounts du from the parties in their Income Tax returns and Revenue has proceeded to demand Service Tax on this amount shown in the Balance Sheet. The ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant. Without appreciating the amount out of the impugned invoices to have been actually received by the appellant and without verifying as to whether the requisite services were finally being provided. Resultantly, we hold that order confirming such a demand is not sustainable. 8. Coming to the plea of the invocation of the extended period, it is already observed that the matter has originated based upon the latest audit of the appellants own record. The order merely state that had audit not been conducted the liability as confirmed qua the appellant could not have been ascertained, cannot be the ground for invoking the extended period of limitation. The primary responsibility for ensuring that the credit amount of service tax is p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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