Postal Department paid service tax by way of Book adjustment

[Kalmesh Siddatagimath]

During the course of audit by the officer of the audit team of Central Taxes Audit Commissionerate, on the records of the Postal Department for the duration of April 2012 to sept 2015 it was observed that the said postal dept had paid service tax by way of book adjustment which was not in accordance with the provision of sec 68 of the Act 1994 read with Rule 6 of service tax Rules, 1994 in view of Board's instructions contained in F.No.137/08/2013-S.T dated 21-04-2014

So, Apex Court, High Court or CESTAT gave judgement or order in favour of Postal Department regarding service Tax paid by way of Book Adjustment by Central Govt or state Govt. As early as possible please send the order of judgement

Thanking you

AI Summary

Postal Department's Service Tax Payment via Book Adjustments Debated Under Section 68 and Rule 6 Validity An audit of the Postal Department revealed that service tax was paid through book adjustments, contrary to Section 68 of the Finance Act, 1994, and Rule 6 of the Service Tax Rules, 1994. The discussion highlights legal interpretations and past judgments supporting book adjustments as a valid payment method. A referenced case, CCE v. Modern Food Indus., supports the notion that book adjustments constitute payment. Another judgment, Senior Post Master vs. Commissioner of C. Ex. & S.T., Jaipur-I, is cited, affirming the practice for government departments. The discussion concludes with the precedent of the Department of Telecom using similar methods before BSNL's formation.