2012 (7) TMI 706

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..... The noticee did not pay any service tax on the said amount. For the period June 2005 to March 2006 they paid service tax amounting to Rs.4,04,542/- on the value of cleaning service provided by them to M/s BMHRC. By October 2006 they realised that they need not have paid such service tax because the said hospital is not a commercial establishment and therefore the service rendered to such establishments was not covered by entry at Section 65(24b). Therefore they adjusted the excess service tax paid during the said period against their total liability for service tax for the period April 2006 to December 2006. The Revenue was of the view that an assessee cannot take such suo moto refund of service tax paid by adjustments against future liab....

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....d in time and whether there is any unjust enrichment occurring while granting such refund. In a situation where assesse himself takes credit on excess payment of service tax both this checks cannot be enforced. In fact there is no provision under Service Tax Rules to allow refund of service tax through such mechanism. To understand the correct scope of Rule 6(4A) of Service Tax Rules 1944, sub-rules 4 and 4A of Rule 6 of Service Tax Rules 1994, as it stood at the relevant time, have to be seen together. These sub-rules are reproduced below :- "(4) Where an assessee is, for any reason, unable to correctly estimate, on the date of deposit, the actual amount payable for any particular month or quarter, as the case may be, he may make a requ....

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....ssessee has taken registration under sub-rule (2) of Rule 4 , that is where an assessee was providing service from more than one premises and such assesse had taken a combined registration for all such premises which was not the case of the present appellants. 5. This rule was changed from 01-03-2007. At that time also sub-rule (4B) made certain special provisions. For the sake of academic interest this provision is reproduced below: "(4B) The adjustment of excess amount paid, under sub-rule (4A), shall be subject to the following conditions, namely :- (i) excess amount paid is on account of reasons not involving interpretation of law, taxability, classification, valuation or applicability of any exemption notification, (ii) exc....