TaxTMI 
TaxTMI 
2025 (12) TMI 713
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....f the case are that the appellant is registered for providing taxable service under Business Auxiliary Services, which includes a 'Commission Agent' as defined under section 65(19)(a) of the Finance Act 1994 (The Act). They are getting a commission from their principals for their indenting activities which amounts to promotion of goods and services of their client. During the course of audit, it was found that the appellant had received commission from their principal, M/s. Seshasayee Paper and Paper Boards Ltd. amounting to Rs.2,44,35,620/- towards their services whereas they declared only Rs.1,83,62,342/- as taxable income in their ST-3 returns pertaining to the period from October 2004 to March 2009. Hence Show Cause Notice dated 19.4.20....
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.... assessee has to follow the mercantile system namely reporting their financial transactions on accrual basis. This was the basic reason for the difference in value arrived between the ST3 return and financial statement and inspite of the appellant bringing the above clear position of law and supported their submissions explaining the difference by producing certificates from their Chartered Accountant, their appeal was rejected. Both authorities failed to consider differences in revenue recognition under various statutory requirements and did not acknowledge Chartered Accountants' certificates regarding accrued but unrealised income. The Ld. Counsel stated that the alleged suppression is not sustainable since the issue stems solely from....
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....the subsequent demand are based on the ST-3 Returns and. Profit and Loss account for the material time furnished by the assessee. Finalization of the accounts had been done by the professionals engaged by the noticee at the material time and the records so maintained are produced as statutory record by the noticee during the audit. Further, the assessee has not produced any material evidence depicting reason for the difference in the amounts as seen in the P& L account and the present certificates except for stating that service tax is to be leviable on accrual basis. Hence I hold that the computation of tax and the subsequent demand is legal and proper. It is pertinent to mention here that the assessee have accepted the contention in the n....
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....h clean hands. In S.P. Chengalvaraya Naidu Vs Jagannath [1994 (1) SCC 1] the Apex Court in no uncertain terms observed: "The Courts of law are meant for imparting justice between the parties. One who comes to the Court, must come with clean hands." 5. Given this context, it is shocking to see the appellant's submissions in paragraphs A, B, D and E of their Appeal Memorandum, which show a lack of respect for the First Appellate Authority-an office with significant responsibility in the scheme of quasi-judicial dispute resolution. The relevant portion is reproduced below: "A. The order of the learned lower appellate authority is unfair, unfounded, unjust, misconceived, contrary to the true position of law and therefor....
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....however, we find that para 4 of the 'SYNOPSIS' submitted by the Ld. Counsel during the hearing, carries a similar language as is reproduced below: 4. On the appellant carrying the matter in appeal the learned appellate authority exposing his bias and prejudice verbatim approved the finding recorded by the original authority in para 11 of his order and dismissed their appeal. Hence this appeal." (emphasis added) 7. We are pained to note this Tribunal's counsel for restraint in language, stated in Final orders NO. 40631/2025 dated 20.06.2025 in the case of M/s RAJ BROTHERS Vs COMMISSIONER OF CUSTOMS (IMPORT), CHENNAI, has not been heeded to. Averments grounded on relevant facts and supported by appropriate case law, prese....