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2015 (11) TMI 103 - AT - Service TaxAdjustment of advance / excess payment of service tax without intimation - Rule 6(4A) of Service Tax Rules, 1994 - Held that:- Appellant have deposited advance service tax of ₹ 2,57,205/-. As regard the condition provided in the proviso to Rule 6 (1A), it is observed that regarding the excess payment though the specific intimation was not given to the Superintendent, but from facts, it is clear that excess payment was reflected in ST3 returns for the period Oct-Dec 2009 and adjustment thereof was reflected in the ST3 returns for the quarter ending March, 2010. The details of these excess amount as well as adjustment was revealed only on the scrutiny of these returns therefore it cannot be said that appellant have not complied with conditions prescribed in the proviso to Rule 6(1A) of Service Tax Rules, 1994. The Adjudicating Authority as well as the Ld. Commissioner(Appeals) have denied the adjustment only on the ground that the case of the appellant is covered under Rule 6(4A) and not under 6(1A) and in terms of Rule 6(4A) the adjustment is allowed only for ₹ 1,00,000/- whereas I observed that the appellant through out from the date of show cause notice maintained that claim for adjustment is under Rule 6(4A). Intention of the rule is very clear that whatsoever excess amount was paid in advance, the same should be adjusted against forth coming tax liability and if it is not allowed it will amount that government will unjustly enriched with excess amount which cannot be intention of the law. Similar case, this tribunal is of the view that amount paid in excess because what was required to be paid is nothing but service tax paid in advance. Therefore the same is allowed to be adjusted in subsequent liability of the service tax - appellants case is covered by Rule 6(1A) of Service Tax Rules, 1994 according to which the adjustment of advance payment is permissible against service tax liability in the subsequent period without any limit of the amount, therefore the impugned order is not sustainable, hence the same is set aside - Decided in favour of assessee.
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