Service Tax adjustment under rule 6(4A) of STR 1994, Service Tax

[Yatin Bhopi]

Dear expert

We recently gone through CERA audit. Now they have submitted their report to our excise jurisdiction and pointed out that in 3 instances reflected in ST-3 return where we have adjusted excess service tax paid beyond the time permitted under Rule 6(4A) of STR 1994 i.e. assessee may adjust such excess amount against his service tax laibility for the succeeding month or quarter, as case may be.

Now we have received letter from department where they have asked us to pay Service tax excess paid in the month of May,14 , June 14 and July 14 and adjusted in Aug 14 and Sep 14 (after Two months). Further They have also asked us to pay interest and Penalty.

Please let me know the factual position of law in this regard. There are various case laws in assesses favor

2016 (6) TMI 239 - CESTAT CHENNAI M/s. Schwing Stetter (India) Pvt. Ltd. Versus CCE, LTU, Chennai

Please share your views which will help me to give suitable replay

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

You contest the demand made by the Department on the strength of case law cited by you. The case law cited by you has clearly held that non-adjustment of excess service tax paid in immediately following month is only a procedural lapse which will not result in short payment of duty.

[Ganeshan Kalyani]

The judgment referred by you in your query is apt and nails the issue.