Disallowance of Service Tax U/s. 43B when payment not received from customer

PCIT Mumbai Vs. Tops Security Limited (Bombay High Court) Bombay High Court held that Section 43B does not contemplate liability to pay service tax before actual receipt of the funds in the account of the assesse. Hence the liability to pay service tax into the Treasury will arise only upon the assesse receiving the funds form the customer and not otherwise. FULL TEXT OF THE HIGH COURT JUDGMENT / ORDER IS AS FOLLOWS: 1. The Revenue’s appeals challenge the orders of the Income Tax Appellate Tribunal, Bench at Mumbai. 2. In all these appeals, the Revenue proposes a common question and ter...