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of <h1>Appellate tribunal grants relief, overrides limitations to adjust excess Service Tax payments.</h1> <h3>HAIDERGARH CHINI MILLS Versus COMMR. OF CUS., C. EX & ST., LUCKNOW</h3> HAIDERGARH CHINI MILLS Versus COMMR. OF CUS., C. EX & ST., LUCKNOW - 2012 (28) S.T.R. 465 (Tri. - Del.) Issues:Excess Service Tax payment adjustment under Rule 6(3) and Rule 6(4B)(iii) of Cenvat Credit Rules.Analysis:The appellant, engaged in sugar and molasses manufacturing, utilized goods transport agency (GTA) services, incurring Service Tax liability. Excess Service Tax payments of Rs. 1,11,902/-, Rs. 97,344/-, and Rs. 1,09,266/- were made in March 2006, March 2007, and December 2007 respectively, which were adjusted in subsequent months. A show cause notice was issued challenging these adjustments. The original adjudicating authority permitted the adjustment of Rs. 1,11,902/- under Rule 6(3) for April 2006 to September 2006. However, for subsequent periods, citing Rule 6(4B)(iii), only Rs. 50,000/- adjustment was allowed, leading to a demand for the balance amounts along with penalties and interest.The appellant contended that Rule 6(3) allows adjustment of excess Service Tax for subsequent periods if conditions are met, including refunding the value of taxable services. The lower authorities limited the adjustment based on Rule 6(4B)(iii), which sets a monetary limit of Rs. 50,000/- for adjustments in a relevant month or quarter. The appellate authority noted that Rule 6(3) continues to be applicable, providing relief for excess payments made in previous periods. Since all conditions of Rule 6(3) were met, there was no need to invoke Rule 6(4B)(iii) for limiting adjustments.In light of the above, the appellate tribunal set aside the lower orders, allowing the appeal and providing consequential relief to the appellants. The judgment emphasized the applicability of Rule 6(3) for adjusting excess Service Tax payments, dismissing the limitation imposed by Rule 6(4B)(iii) and ensuring compliance with the statutory provisions for relief.
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