Paid Service tax adjust to payable Service tax

[Raja krishnan]

Sir,

Our client is a manufacturer and they have already paid their Service tax for some of Rupees to their Franchise Service as well as they have done some job work to somebody, and now the doubt is,

1) job work is applicable to service tax?

2) if yes they will adjust from the above paid service tax which is paid by their Franchise Service for the payable service tax for job work ?

Please clarify the aforesaid our request.

AI Summary

Job work as service: excess service tax cannot be adjusted when taxability is under interpretation; refund or cenvat options exist.
Job work is treated as a service unless it amounts to manufacture. Excess service tax payments may be adjusted against subsequent liabilities, but adjustment is barred where the excess arises from questions of taxability, classification, valuation or exemption applicability; therefore excess paid on one service cannot be adjusted against disputed job work liability. Taxpayers may seek refund of excess payments or, where eligible, utilise pooled Cenvat credit for payment of service tax.