2017 (6) TMI 218

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....ncial 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 that the appellant has short-paid the service tax amounting to Rs. 92,500/- for period 1st April 2005 to 31st March 2010 in contravention of Section 68 of the Finance Act 1994. On this allegation, a show-cause notice dated 20.09.2010 was issued to the appellant. In reply to the show-cause notice, the appellant had accepted short-payment of Rs. 68,977/- for the year 2005-06, 2007-08, 2008-09 and 2009-10 and has stated about the excess payment of Rs. 3,067/- for the year 2006-07 thus resultin....

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....able 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 department is itself on wrong basis and therefore the levy of penalty under the Finance Act is untenable. He also submitted that the correct calculation of the service tax liability and accepted short-payment of service tax and depositing the same along with interest by the appellant and the copies of reconciliation and profit and loss statement have also been enclosed with the submissions. He also submitted that the appellant has not suppressed any facts in order to evade payment of service tax and the omission was inadve....