2019 (10) TMI 1403

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....ax write off of Rs. 22,73,576/-. 3. Briefly facts and circumstances in the case are that the assessee during the year under consideration had debited a sum of Rs. 22,73,576/- on account o service tax recoverable/written off. The Assessing Officer asked to furnish the details in this regard. In response thereto, the assessee pointed out that "the service tax recoverable is the amount of service tax on which credit is not allowed under the Service tax Act. Hence, it is to be claimed in the P/L account in the audited financial statement of the assessee company." The Assessing Officer was of the view that where service tax is collected by the assessee at the time of raising invoices upon the respective parties towards services provided, the ....

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....him without any time limit under Rule 4(1) of Cenvat credit rule." 4. The assessee is in appeal against the order of the CIT(A). 5. Ld.AR for the assessee pointed out that any input of service tax paid was to be set off against the service tax receivable. The assessee was following such a method. But once the assessee realized that service tax was not recoverable then the service tax paid was debited to the accounts in later years. He placed reliance on the decisions of Hon'ble Delhi High Court in the case of CIT vs M/s. Samtel India Ltd. in ITA No.130/2000 order dated 26.09.2013 and the decision of Hyderabad Bench of the Tribunal in the case of M/s. NCS Distilleries P. Ltd. vs ITO in ITA No.699/Hyd/2012, Assessment Year 2008-09 vide ....