2017 (7) TMI 409

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....se is that appellant is a manufacturer of "Motor Vehicle, Cast Articles" . During the month of April, 2010 appellant was liable to pay service tax of Rs. 2,72,237/- against which they have paid cash of Rs. 15480/- and balance amount of Rs. 2,56,757/- has been adjusted against service tax paid in excess in the month of March, 2010. The department raised objection that as per Rule 6 (4A) read with R....

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....ection 75 of the Finance Act and also imposed penalty under Section 76 and 77. 2. Shri. P. V. Sadavarte, Ld. Counsel for the appellant submits that the proposal of the Revenue is not correct for the reason that as per Rule 6 (4A) the excess amount of service tax paid by the assessee can be adjusted against service tax liability for the succeeding month or quarters as the case may be. In the prese....

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....een adjusted there is short payment of service tax in the month of April, 2010 accordingly the demand was rightly confirmed. Moreover, appellant themselves claimed the refund of excess adjusted amount and the same was granted and appropriated, for this reason now appellant could not have argued that the adjustment was made correctly. As regard the interest and penalty, he submits that since the am....

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....delay in payment of service tax on the due date till appropriation i.e. 22-8-2011 interest is clearly chargeable, hence, I uphold the demand of interest. As regard the penalty, I find that the adjustment was made by the appellant due to interpretation of provision of Rule 4(A) and 4(B). Moreover, excess paid service tax even though not adjustable the same was lying with the government exchequer th....