Adjustment of Overpaid Amount Allowed Against Current Demand under Rule 6(3) | Stayed Penalties | Compliance Deadline

The Tribunal allowed the adjustment of overpaid amount against the current demand as per Rule 6(3) of Service Tax Rules, 1994. The applicant was directed to pre-deposit the balance amount within four weeks, with penalties stayed during the appeal. Compliance was required by 08.01.2013.

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The stay application was filed against a service tax demand of Rs. 9,90,555/-. The applicant had overpaid Rs. 8,85,841/- for a previous period and requested to adjust it against the current demand. The Tribunal allowed the adjustment as per Rule 6(3) of Service Tax Rules, 1994. The applicant was directed to pre-deposit the balance amount within four weeks, and penalties were stayed during the appeal. Compliance was to be reported by 08.01.2013.

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