Actual Figures Can Be Considered To Determine Service Tax Payable By Assessee If Books Of Accounts Show Higher Figures Than Statutory Returns: CESTAT

The CESTAT has ruled that actual figures can be considered for determining service tax payable by an assessee, especially if the books of accounts show higher figures than statutory returns. This decision emphasizes that tax authorities should not solely rely on filed returns if other credible evidence indicates a higher taxable value. The tribunal's ruling aims to ensure that the correct service tax liability is assessed based on the true financial position of the assessee, as reflected in their detailed accounting records. This provides a crucial clarification, allowing for a more accurate and comprehensive assessment of tax obligations, even when discrepancies exist between filed documents and internal financial records.