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2018 (8) TMI 1224 - AT - Service TaxDemand of Interest - Suo motto adjustment of excess service tax paid in the subsequent months - Section 11B of the Central Excise Act read with Section 83 of Finance Act, 1994 - Held that:- It is an admitted fact that the appellant on account of practical difficulties, paid the service tax in advance. Further, the BSNL is a Government owned company and the subscriber cannot be made to pay the service tax directly to the registration office but the payment is to be routed through the Customer Service Centres - in the present case, it was the excess payment which was made and the same was adjustment during the subsequent months but the Department raised the objection that the same Cannot be and therefore the Department is asking for the interest for the period until it becomes proper payment by way of sanction of refunds. The Department should have considered the practical difficulties on account of which the appellant has devised the system of paying in advance and subsequently adjusting the excess payment and we do not find any infirmity in the procedure followed by the appellant and the Department has also not raised objection from the very beginning. The impugned order demanding interest is not sustainable in law - appeal allowed - decided in favor of appellant.
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