Advance service tax deposits are not time-barred for refund where they exceed the tax liability.

Excess service tax paid in advance under Rule 6(1A) of the Service Tax Rules, 1994 was treated as an advance deposit with the Central Government, not as a tax payment attracting the usual refund limitation. The text states that such advance deposits stand on the same footing as amounts in an assessee's account current or Personal Ledger Account, and are regarded as the assessee's property. Limitation applies only to amounts actually paid as service tax, not to advance sums paid in excess of the liability. On that basis, the refund claim was held not to be time-barred and the excess amount was refundable.

---

---

Issues: Whether excess service tax paid in advance under Rule 6(1A) of the Service Tax Rules, 1994 was subject to limitation when refund was claimed.

Analysis: Excess payment made over the service tax due was treated as advance payment to the Central Government under Rule 6(1A). Such advance stood on the same footing as amounts lying in account current or Personal Ledger Account, which are treated as the assessee's property. Limitation applies only to amounts actually paid as service tax and not to advance deposits made in excess of the tax liability.

Conclusion: The refund claim was not hit by limitation and the assessee was entitled to refund of the excess amount.

---