https://www.taxtmi.com/caselaws?id=759353 CESTAT Kolkata allowed the appeal concerning irregular availment of composition scheme and service tax demands. The tribunal held that payment under composition scheme constitutes deemed exercise of option, citing Calcutta HC precedent. Service tax is payable at rates applicable when services are rendered, not when payments are received, following Delhi HC ruling. Demands totaling Rs.3,53,30,714 based on GL code comparisons were set aside as the adjudicating authority failed to consider appellant's reconciliation report. Contract-wise separate records satisfied Rule 6 requirements for input services. No Cenvat credit reversal required for bad debts as no statutory provision mandates it. Extended limitation period and penalties were unsustainable due to absence of suppression with intent to evade tax. en-us Fri, 27 Sep 2024 00:00:00 +0530 Fri, 27 Sep 2024 15:00:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=759353 CESTAT Kolkata allowed the appeal concerning irregular availment of composition scheme and service tax demands. The tribunal held that payment under composition scheme constitutes deemed exercise of option, citing Calcutta HC precedent. Service tax is payable at rates applicable when services are rendered, not when payments are received, following Delhi HC ruling. Demands totaling Rs.3,53,30,714 based on GL code comparisons were set aside as the adjudicating authority failed to consider appellant's reconciliation report. Contract-wise separate records satisfied Rule 6 requirements for input services. No Cenvat credit reversal required for bad debts as no statutory provision mandates it. Extended limitation period and penalties were unsustainable due to absence of suppression with intent to evade tax. Case-Laws Service Tax Fri, 27 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=759353