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2016 (1) TMI 344 - AT - Service TaxUtilization of Service Tax, paid by one assessee, by the another assessee after merger between the two - M/s. BPC Projects had merged with M/s. PSP Projects Pvt. Limited on 01.4.2009. Therefore, all the assets and liabilities of M/s. BPC Projects were taken over by M/s. PSP Projects Pvt. Limited. Hence M/s. PSP Projects Pvt. Limited are rightly entitled to avail PLA balance lying with M/s. BPC Projects on 01.4.2009. M/s. PSP Projects Pvt. Limited have paid the service tax liability of M/s. BPC Projects also after 01.4.2009. Learned Consultant contended that they had intimated the department on 26.5.2009 about their intention to utilise the PLA balance lying with M/s. BPC Projects as on 01.4.2009 towards the service tax liability of M/s. PSP Projects Pvt. Limited after 01.4.2009. Held that:- Simply because M/s. BPC Projects had not surrendered the service tax registration, it cannot be said that PLA balance lying unutilised was available with M/s. BPC Projects even after 01.4.2009. M/s. PSP Projects Pvt. Limited was the successor and the only legal entity with effect from 01.4.2009 and hence was legally entitled to utilise the said unutilised PLA balance. Hence, we find that the issue herein is only non-observance of procedure of intimation to Range Superintendent etc. and is only a technical violation, if any. Adjustment of service liability allowed - Decide in favor of assessee on merit as well as on limitation.
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