Excess Service tax paid by challan, can it be adjsuted against other service tax liabilty ?

[BipadBhanjan dixit]

Dear Sir,

This has with reference to the old query discussed earlier without concrete statutory supplort.

Now the detarment view that the assessee can not be adjsuted the excess payment of service tax under one catagory of service from short payment of service tax due form other service tax catagory.

If there is any lagal backing to thie view from CESTAT or Hon'ble HC ,please do share .

Thanks & regards.

B B Dixit

[KASTURI SETHI]

The Department's view point is absolutely right because each service has its classification, accounting code number, rate of Service Tax, different percentage of abatement etc. So the same cannot be intermingled. It is not a case of procedural lapse.

[DR.MARIAPPAN GOVINDARAJAN]

The view of the Department is correct as confirmed by Shri Sethi.

[Padmanathan KV]

1) the circular no.ST.58/7/2003 dt 20/05/2003,

2) trade ontice no.4/2014 -ST issued by the Kochi Commissionerate.

3) Sahara India TV Network Vs CCE ,Noida 2016 (41) STR 145 Trib- Delhi. =  2015 (10) TMI 2037 - CESTAT NEW DELHI

4) Denag paper mills pvt. ltd,Vs UOI (3-2016-TIOL-37-HC-AHM-CX = 2016 (1) TMI 389 - GUJARAT HIGH COURT

you can ask the dept to adjut the tax paid against the correct code

AI Summary

Service tax classification prevents cross-category adjustment of excess challan payments; seek reallocation to the correct code instead. Excess service tax paid by challan cannot be set off against liabilities of a different service category because each service has a distinct accounting code, rate and abatement; taxpayers should seek administrative reallocation or adjustment to the correct accounting code rather than unilateral cross category adjustment.