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2016 (6) TMI 675 - AT - Service TaxSuo-Moto adjustment of excess service tax paid with the subsequent liability without adhering to provisions of Rule 6(4A) and 6(4B) of Service Tax Rules, 1994 - The department entertained the view that as the respondents adjusted the excess amount suo-motto, without intimating department and in violation of above said Rules, the respondents have short paid service tax to that extent. Held that:- The assessee is given a option to adjust the excess paid amount to future liability of service tax by the said rules. The assessee can also opt to claim refund of excess paid amount. In that case, the assessee will be eligible for interest also. When the assessee opts for adjustment so as to eliminate the hassles of refund by foregoing the interest, strict interpretation and denying adjustment would result in unjust enrichment of the Revenue which can never be the intention of the Rule. Rule 6(1A) does not impose any restriction - Demand set aside - Decided in favor of assessee.
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