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2019 (2) TMI 17 - AT - Service TaxSuo-moto adjustment of excess service tax paid - no intimation made to Department about such adjustment - Sub-section 4A of Rule 6 of Service Tax Rules, 1994 - scope of SCN - Held that:- On perusal of SCN it is seen that the allegation is limited to the adjustment made by the appellant. There is no allegation that such adjustment is with regard to the commission received after 01.04.2005 for the services provided prior to 31.03.2005, etc. - Since the SCN does not make any such allegation, such observation made by the adjudicating authority is definitely beyond the scope of SCN. Whether the adjustment made by the appellant is sustainable? - Held that:- In Central Excise Law there is no such provision for adjustment. In case of excess payment of duty the only option available to the assessee is to apply for refund under Section 11B of the said Act. However, the legislature has made provisions for adjustment of excess tax paid in the Service Tax Rules. This is to facilitate the assessee so as to eliminate the hassles to obtaining the refund. If the assessee has made excess payment, the same can be adjusted towards the liability for subsequent months. The essence of this provision is to help the assessee who has made excess payment to utilize such excess amount to pay up the tax liability for other period. The demand cannot sustain - Appeal allowed - decided in favor of appellant.
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