2011 (2) TMI 1395 - AT - Service Tax

Summary

Issues involved: Interpretation of Rule 6(3) of the Service Tax Rules, 1994 regarding adjustment of excess Service Tax paid, time limitation for demand issuance, applicability of Tribunal decision pre-1.3.2007.

Interpretation of Rule 6(3) of Service Tax Rules, 1994:
The appellant, as recipient of GTA service, adjusted excess Service Tax paid towards their liability during specific months. The original authority held that such adjustment was not covered under Rule 6(3) and demanded the excess amount along with penalties. The Commissioner (Appeals) upheld the order, except for one penalty.

Time limitation for demand issuance:
The appellant argued that the demand issued was time-barred as the adjustment was appropriately informed in the returns. The appellant also cited a Tribunal decision allowing regularization pre-1.3.2007.

Applicability of Tribunal decision pre-1.3.2007:
The appellant contended that their case was covered by a Tribunal decision predating the relevant amendment. The Tribunal found no dispute regarding the excess payment and its utilization for part payment of Service Tax, leading to a prima facie dismissal of the demand.

Final Decision:
Considering the circumstances, the Tribunal waived the pre-deposit of dues and stayed the recovery pending appeal disposal. The appeal was scheduled for final hearing on 02.03.2011.