2009 (9) TMI 275

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....January to May, 2005? (b) Whether service tax paid by the transporter instead of appellant, is required to be paid by the appellants? 2. The relevant facts of the case, in brief, are that the appellants are holding service tax registration for payment of service tax in relation to the services received from Goods Transport Agency. On scrutiny of the records, it was found that in some cases the transporter paid the tax on Goods Transport charges. They have filed affidavit along with TR-6 challan in respect of payment of tax by the transporter. It is alleged that the appellants are liable to pay tax under the provisions of rule 2 of Service Tax Rules, 1994 and therefore, tax was demanded. The other issue is that during the period Januar....

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....ntire case involves interpretation of provisions of law and, therefore, no penalty should be imposed. 4. Learned SDR on behalf of the Revenue submits that rule 6(3) of Service Tax Rules, 1994 provides adjustment of tax liability against excess payment to the short payment. He submits that there is no provision for adjustment against short payment to excess payment. In this connection, he drew attention of the Bench to rule 6(3) of the said Rules. Regarding the other issue, he submits that there is liability of payment of tax on the assessee in respect of GTA service, which cannot be shifted on the transporter. It is his submission that the appellants are liable to pay tax under the provisions of Finance Act, 1994 and they are bound to di....

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....he subsequent period, if the assessee has refunded the value of taxable service and the service tax thereon to the person from whom it was received. It is clear that the adjustment of the excess service tax is permissible against the subsequent period and subject to fulfilment of the condition that if the assessee has refunded the value of taxable service and the service tax thereon to the person from whom it was received. There is no provision for adjustment for short payment of tax earlier period against excess payment of tax in the subsequent period. Learned Chartered Accountant submits that the excess amount paid in the subsequent period may be treated as mere deposit which can be adjusted against the earlier short payment and it may be....