WRONG ACCOUNTING CODE.

[SANJEEV JADHAV]

Dear Sir,

I wish to deposit  Ed. Cess Rs. 100000/- and H.S.Ed.cess Rs. 50000/- in Central Excise account. But at the time of epayment i have wrongly selected accounting code  of Ed. Cess and H.S. Ed. Cess of  Service Tax . Can we transfer the same for payment of  Ed. cess and H.S.Ed. Cess of excise. Is their any circular / notification for rectification of above mistake.   

[CASeetharaman KC]

Using a wrong accounting Code for payment of Service Tax clarification- Regarding.

ST Circular No. 58/7/2003 Dated, 20^th May, 2003

  I am directed to say that a representation had been received by the Board raising apprehensions regarding using wrong Accounting Code for payment of Service Tax. Whether, amounts to having paid the Service Tax or not. 

2.   The Board has examined the issue. In this connection, I am directed to clarify that the assessee need not be asked to pay the service tax again. In such cased the matter should be sorted with the P.A.O. As regards to the cases where the assessee was asked to pay service tax again, the amount thus paid may be refunded by the concerned divisional Asst. Commissioner/Deputy Commissioner.

3.   The field formations may suitably be informed.

4.   Trade Notice may be issued for the information of the trade.

5.   The receipt of this Circular may kindly be acknowledged.

6.   Hindi Version will follow.

[YAGAY andSUN]

In addition to above, please intimate to the concerned jurisdictional Central Excise Department in the regard, so that any unwarranted situations which may arise at the time of Departmental Audits, could be coped.

AI Summary

Tax Payment Error: Misapplied Education Cess to Service Tax Instead of Central Excise; 2003 Circular Addresses Correction Process. A user inquired about mistakenly selecting the wrong accounting code for Education Cess and Higher Secondary Education Cess payments intended for Central Excise but applied to Service Tax. They asked if the payment could be transferred correctly and if any circulars addressed such errors. A respondent referenced a 2003 circular clarifying that the taxpayer should not be required to pay again and that any duplicate payments should be refunded by the relevant authorities. Another respondent advised notifying the jurisdictional Central Excise Department to prevent issues during audits.