Bona fide misclassification of service tax payment permits adjustment to the correct head, preventing double demand.

Service tax paid to the Government under an incorrect accounting head, but arising from a bona fide mistake, could be adjusted to the correct head rather than demanded again. The record showed that revenue had already reached the exchequer and that there was no intention to evade duty or withhold payment. A Board circular supporting transfer between minor heads reinforced the adjustment. Accordingly, the assessee was not liable to pay the same amount a second time merely because of the booking error.

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Issues: Whether service tax already paid by the assessee under a wrong accounting head could be adjusted to the correct head instead of being demanded again.

Analysis: The payment had already reached the Government exchequer, and the dispute arose only because it was booked under an incorrect head. The Board's circular permitting transfer of credit balance from one minor head to another supported such adjustment. The record indicated a bona fide mistake and did not show any intention to evade duty or withhold revenue.

Conclusion: The adjustment was permissible, and the assessee could not be required to pay the same amount again under the proper head.

Ratio Decidendi: Where tax has been actually paid to the Government but credited under a wrong head due to a bona fide mistake, it may be adjusted to the correct head and cannot be demanded again merely because of the accounting error.

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