Service tax paid under an incorrect assessee code remains valid payment, barring extended limitation and consequential liabilities.

Service tax deposited under a partner's proprietorship registration number, rather than the partnership firm's registration number, remains payment where the amount was credited to the Government account. A bona fide clerical error in the assessee code does not by itself establish non-payment or intent to evade tax. Consequently, the extended limitation period under the proviso to Section 73(1) cannot be invoked in the absence of evasion intent, and the related service-tax demand, interest and penalty are unsustainable.

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Issues: Whether service tax paid under the registration number of a partner's proprietorship concern could be treated as non-payment by the partnership firm, thereby justifying invocation of the extended limitation period and confirmation of demand, interest and penalty.

Analysis: The service tax liability had been deposited with the Government, although the challans carried the registration number of the partner's proprietorship concern instead of that of the partnership firm. The payment was a bona fide clerical error, not an attempt to evade tax. Payment under an incorrect assessee code cannot be disregarded where the amount stands credited to the Government account. In the absence of intent to evade tax, the conditions for invoking the extended period under the proviso to Section 73(1) were not satisfied.

Conclusion: Payment under the wrong assessee code did not amount to non-payment of service tax; the extended period was unavailable, and the service-tax demand, interest and penalty were unsustainable, in favour of the assessee.

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