2018 (7) TMI 1925

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ax department. During the period of dispute the appellant has provided the services of Clearing and Forwarding, Transport service and Sales Promotion services mainly to M/s. ACC Ltd and M/s. Everest Industries Ltd. and also transport services to the dealer/Consumer of these companies. The proceedings were initiated vide Show Cause Notice dated 07.04.2008. The demand has been raised with the allegation that there was a considerable difference in the service charges shown in the audited Balance Sheet and ST-3 returns filed by the appellant, during the period from October, 2002 to March,2007. 2. The Adjudicating Authority confirmed the demand by recording that the assessee have suppressed the value of taxable services by way of declaring lo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Form ST-3 filed before the department. The Ld. Consultant further submitted that the financial statements are prepared by them following the generally accepted accounting principles. They are required to prepare Financial Statements on accrual basis of accounting where as they are required to discharge Service Tax on receipt of the value of taxable service rendered. However, the demand has been raised considering values from the financial statements against which the payment was yet to be received. The Ld. Consultant also produced before the bench a statement reconciling the revenue from operation as per the financial statements with the taxable values as disclosed in ST-3 return filed. The Ld. Consultant contended that as far as inclusi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....unal's decision in the case of E.V Mathai & Co. Vs CCE reported in (2007) 7 STT 189 (TRI-BANG), In this case the Tribunal held that transportation charges received by C&F Agent under a separate contract and on the basis of separate bills would not be includible in the taxable value for C&F Services. Reliance was also placed in the case of Bhagyanagar Services Vs CCE reported in (2007) 6 STT 460 (Tri-Bang.). We also find that the appellant provided Transportation services mainly to M/s. ACC Ltd and M/s. Everest Industries Ltd who are liable to pay tax under reverse charge mechanism. The appellant also provided a certificate obtained from the recipient certifying payment of tax by the service recipients. 7. The reconciliation statement sub....