Form 26AS mismatch alone cannot sustain service tax demand without verifying books and accrual-based receipts.

Service tax demand based only on Form 26AS was treated as insufficient where the assessee claimed commission income was maintained on an accrual basis and may have been received in a later period. The discrepancy required verification against the assessee's books and records to determine whether the receipts related to earlier services and were correctly reflected in the relevant return period. The impugned order was set aside and the matter remanded to the Original Adjudicating Authority for fresh decision after examining the record.

---

---

Issues: Whether the service tax demand based on Form 26AS could be sustained without verifying the assessee's claim that commission income accrued in one period was actually received in a subsequent period and should be matched with the books of account.

Analysis: The assessee's stand was that its accounts were maintained on mercantile or accrual basis and that commission accrued in one financial year might be received in another period. The discrepancy therefore required factual verification from the record maintained by the assessee. The comparison with Form 26AS alone was not sufficient to conclude the issue without examining whether the receipts related to earlier services and whether the amounts had been properly reflected in the relevant return period.

Conclusion: The impugned order was set aside and the matter was remanded to the Original Adjudicating Authority for fresh decision after verification of the assessee's records.

---