Excess service tax collection: obligation to deposit surplus with government and interest liability for the collector.

Excess service tax collected must be paid forthwith to the Central Government; failure to do so attracts a show cause notice and an adjudication determining the amount payable which is then payable by the collector. Amounts paid are adjustable against the collector's service tax liability on finalisation of assessment or related proceedings. Interest at a government fixed rate applies from the month following the month in which payment should have been made until actual payment, with interest recalculated if appellate authorities alter the determined amount. Surplus after adjustment is credited to a consumer welfare fund or refunded to the person who bore the incidence under a prescribed application process.

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