TaxTMI 
TaxTMI 
2016 (8) TMI 796
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....nd Supply Agency Service. During the course of an Audit conducted by the officers of the Internal Audit of the Service Tax Commissionerate during November 2007, scrutiny of ST-3 Returns and TR-6 Challans for the period from 2005-2006 upto the half year ending September 2007, profit and loss a/c, invoices and Ledger accounts revealed that they were raising only debit notes and not any invoices or bills since the transactions were only with their sister concerns. It was also noticed that the assessee had short paid service tax of Rs. 14,58,480/- due for the month of September 2007 and they have adjusted the amount of Rs. 14,58,480/- on their own without indicating during which period they have paid such amount in excess. 2. The department wa....
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....6,200/- + Rs. 9,02,280/-] during the months of July 2007 & August 2007 is not at all pertaining to service provided by them but purely because of invoicing error and the question of refunding of the same to the recipient does not arise since the recipient has not made any payment for the service as well as the service tax thereon, which is wrongly claimed by the appellant. He submits that excess payment of Rs. 14,58,480/- was borne by them, it was adjusted against the service tax payable for the month of September 2007. Appellant's case is of excess payment made in earlier months adjusted in subsequent months and not a case of 'service tax not levied or paid or short levied or short-paid or erroneously refunded' and therefore Se....
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....cords and heard the rival contentions at length. The learned Commissioner (Appeals) has observed that as per Rule 6(3) of Service Tax Rules, 1994 which has been reproduced in the impugned order which is also reproduced here: 3) Where an assessee has paid to the credit of Central Government Service Tax in respect of a taxable service, which is not so provided by him either wholly or partially for any reason, the assessee may adjust the excess service tax so paid by him (calculated on a prorate basis) against his service tax liability for the 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. and the adjustment of excess service tax paid by the ....
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....le 6(4A), Rule 6(4B) and Rule 6(1A) of the Service Tax Rules 1994. But when one sees the combined effect of the provisions of STR 1994 just quoted above, the implications are that the present appellant has to be given the benefit of adjustment of excess service tax paid by them during the relevant period i.e. April 2009 to September 2009. Revenue is also in agreement with the fact that there had been excess payment of service tax during the relevant period. The appellant interpreting the above provisions of Service Tax Rules 1994 made the adjustment of this excess payment of service tax during the later period though Revenue pleads that the appellant had only one route of claiming this excess payment of service tax by filing a refund claim ....