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2023 (2) TMI 780 - AT - Service TaxError in payment of service tax - service tax registration number of another unit used wrongly - Non-payment of Service Tax at their Anjar unit on services received from abroad on reverse charge basis - instead of Anjar unit the service tax paid by the head office at Mumbai - HELD THAT:- There is no dispute as the same was admitted in the show cause notice as well as in the impugned order that the service tax of Rs. 78,17,225/- was deposited by the appellant’s head office at Mumbai under different registration number of input service distributor. The appellant’s Anjar unit is not a separate entity as the same is part of a single entity i.e. Welspun Gujarat Stahi Rohren Ltd which is now known as Welspun Corp Ltd. Therefore, the payment made by head office under different registration number cannot be demanded from the Appellant’s Anjar Unit and if at all there is discrepancy of different registration of head office the department could have adjusted service tax paid by the head office against the service tax due of appellant’s Anjar unit. From the Circular No 58/7/2003 dated 20.05.2003 it is clear that the discrepancy such as payment of service tax under wrong registration can be adjusted against the correct registration for which the service tax is actually due. In the present case even though the service tax was paid under the registration of head office Mumbai but the appellants Anjar unit as well as their Mumbai head office is one single entity. Accordingly, in the light of the above circular the department could have made the necessary adjustment instead of raising the demand twice on the appellant. The issue has been well settled in many cases. Reliance may be placed in the case of M/S. WESTERN COALFIELDS LTD VERSUS COMMISSIONER OF EXCISE & SERVICE TAX [2019 (4) TMI 1075 - CESTAT MUMBAI] where it was held that As long as the duty is paid and credited duly to the Govt. of India account, procedural infractions which are curable in nature will not nullify such payments. Demanding such duty second time is certainly harsh and has no sanction of law, more so along with interest and penalty. From the above judgments and board circular cited it is settled that merely because the service tax paid under different registration but by the same company, cannot be tent a mount to non- payment of service tax. Hence, the demand of service tax which was already paid cannot be made twice. Accordingly, demand of service tax in this case is also not sustainable. Appeal allowed.
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