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2016 (1) TMI 924 - AT - Service TaxSelf adjustment of excess service tax paid towards payment of service tax during the subsequent period - appellants had not intimated the said adjustment to the department - Rules 6(4A) and 6(4B) of the Service Tax Rules, 1994 - Held that:- there is no dispute about the fact that appellants have paid excess service tax amount of ₹ 2,49,858/- in May 2010. The dispute revolves around the procedure they have followed in adjusting the said excess amount against the future service tax liabilities in June, July and August 2010 suo-moto. We find force in the arguments of the learned Senior Adviser of the appellants that infringement of the procedure is not serious enough to impose equivalent penalty of ₹ 2,49,858/- under Section 78 in the instant case. It is so especially, since in reality there is no short payment of service tax of ₹ 2,49,858/- in the instant case, and it is a question about adjustment of excess service tax paid which has been adjusted suo-moto against the subsequent service tax liability. Demand of duty and penalty set aside - levy of penalty of ₹ 5,000/- u/s 77 upheld - Decided in favor of assessee.
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