2011 (9) TMI 828 - AT - Service Tax

Suo motu adjustment of excess service tax paid Rule 6(4A) of the Service Tax Rules, 1994 - Held that - Noting that the rule provides for suo motu adjustment and also noting that the excess payment could be adjusted only on 28.06.2007 by the issue of a Credit Note, and adjustment was made almost immediately thereafter, unconditional waiver of pre-deposit

Summary

The Appellate Tribunal CESTAT, Chennai granted waiver of pre-deposit of service tax of Rs.1,96,649/- with interest. The excess tax payment made by the assessees was not permissible for suo motu adjustment as it was done after the required time frame. However, the adjustment was made promptly after the issue of a Credit Note, leading to the waiver of pre-deposit and stay on recovery pending appeal.