Whether wrong classification of service category required service tax payment again?

[Yatin Bhopi]

Dear Experts

EA2000 audit is going on for our Service tax registration. In year 2012 to 2014 we have made service tax payment in consulting engineering service instead of intellectual property service due to wrong classification of service. Now EA 2000 auditors are insisting to pay us service tax again in intellectual property. We argued that since payment has already been made for same service there will be no service tax payment again for same service.

Please let us know any circular for clarification and case laws in our favor

AI Summary

Wrong service classification: tax paid under one category prevents a duplicate service tax demand if reallocation or refund is sought.
Mistaken classification of a taxable service does not create a fresh liability where service tax has already been paid for the same transaction; the operative principle is that single taxation applies so the same transaction is not taxed more than once. Taxpayers who discover payment under an incorrect account or assessee code should notify the jurisdictional office with payment challans to seek reallocation or refund rather than making a duplicate payment.