2015 (10) TMI 2036 - AT - Service Tax

Appeal dismissed for service tax deposit under wrong registration number. Importance of accurate registration details highlighted.

M/s. Plastichemix Industries Versus Commissioner of Central Excise & S.T., Vadodara

The Tribunal dismissed the appeal, upholding the demand for service tax along with interest, as the appellant mistakenly deposited the tax under the wrong ... Deposit of service tax with wrong registration number of other unit instead of appellant's own registration number - request for adjustment and due credit with the service tax liability of the appellant unit - Held that:- there is no provision under the present service tax law for adjustment of service tax payments from the account of one registered unit to the account of another registered unit. The only course for the appellant is to make the payment of the confirmed demand along with interest. However, the other unit of the appellant is eligible to take credit of the amount paid in their relevant records. - Decided against the assessee. Issues:Misappropriation of service tax payment under wrong registration number.Analysis:The appeal in this case stemmed from a discrepancy identified during the scrutiny of ST-3 Returns filed by the appellants for specific periods. It was discovered that the appellants had failed to pay service tax amounting to a substantial sum for GTA services. The issue arose because the appellants mistakenly deposited the service tax under the wrong Registration number, which led to a show cause notice being issued. The jurisdictional Assistant Commissioner confirmed the demand for service tax along with interest, a decision upheld by the Commissioner (Appeals) in the impugned Order-in-Appeal.During the hearing, the appellant's representative acknowledged the error made in depositing the service tax under the incorrect Registration number. The appellant's argument was based on the premise that both units of the company were under the same management, and the deposited amount ultimately benefited the government. However, the Revenue's representative contended that there was no provision for such adjustment under the prevailing service tax law. The Tribunal concurred with the Revenue's stance, emphasizing the absence of a legal provision for transferring service tax payments between different registered units. Consequently, the Tribunal ruled that the appellant must fulfill the confirmed demand for service tax along with interest, while noting that the other unit of the appellant could claim credit for the amount paid in their records.Ultimately, considering the lack of legal provisions allowing for the requested adjustment of service tax payments between distinct registered units, the Tribunal dismissed the appeal filed by the appellant. The decision was based on the legal framework governing service tax payments and the specific circumstances of the case, highlighting the importance of adhering to correct registration details when making such payments.