In M/s GUJARAT NRE COKE LTD Versus COMMISSIONER OF CENTRAL EXCISE, RAJKOT [2012 (6) TMI 581 (Tri)] it is held that:

“…..when there is an excess payment of service tax, the same could be adjusted against the subsequent service tax liability is the law settled by the following decisions:

1. Powercell Battery India Ltd. - 2010 (3) TMI 357 (Tri)

2. Nirma Architects’s Valuers - 2005 (10) TMI 4 (Tri)

3. Aurore Trust - 2009 (9) TMI 189 (Tri)

4. Agrimas Chemicals Ltd. - 2008 (2) TMI 77 (Tri)

5. Narnolia Securities Pvt. Ltd. - 2008 (3) TMI 70 (Tri)

6. Bharti Cellular Ltd. - 2005 (6) TMI 8 (Tri)

7. Bayer Diagnostics India Ltd. - 2007 (4) TMI 124 (Tri)

8. Prachar Communications Ltd. - 2006 (3) TMI 35 (Tri)”

 

Excess service tax adjustment allows overpayments to be set off against subsequent service tax liabilities as an administrative remedy. Excess payment of service tax may be set off against future service tax liabilities; an excess discharge of service tax is available to reduce subsequent period obligations and serves as an administrative mechanism permitting taxpayers to adjust overpaid amounts against ensuing dues rather than seeking immediate refunds, a principle affirmed by multiple tribunal authorities.