2018 (1) TMI 1055 - AT - Service Tax

Adjustment of remittance of wrong assessee code / registration number - denial on the ground that there is no provision for said adjustment under the Finance Act, 1994 - Held that - The Board is issued a Circular dated 20.5.2003 wherein it is clarified that the assessee shall not be asked to pay service tax again if he has paid service tax under a wrong accounting code - reliance placed in the case of M/s. Sahara India TV Network Versus C.C.E. & S.T., Noida 2015 (10) TMI 2037 - CESTAT NEW DELHI , where Tribunal had set aside the demand as well as the penalties imposed directing the adjudicating authority to make necessary adjustment - impugned order cannot sustain - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Procedural lapse in mentioning incorrect assessee code in service tax payment.
2. Request for adjustment of payment made under wrong registration number.
3. Interpretation of provisions under the Finance Act, 1994 regarding payment adjustments.
4. Applicability of relevant legal circulars and precedents in similar cases.

Detailed Analysis:
Issue 1: The appellants inadvertently mentioned themselves as non-assessee and selected the wrong jurisdictional office while applying for new registration for service tax payment. This led to the generation of a registration number under the wrong Commissionerate initially.

Issue 2: The appellants sought adjustment of the payment made under the incorrect registration number to the correct one. The department declined this request, leading to a show cause notice alleging non-payment under the correct registration number.

Issue 3: The appellant argued that there was no short-payment of service tax, and the error in mentioning the incorrect assessee code was a procedural lapse that should be condoned. They relied on a Board Circular stating that the assessee need not repay service tax if paid under a wrong accounting code, citing a Tribunal decision supporting this stance.

Issue 4: The department contended that there is no provision in the law for adjusting payments made under the wrong assessee code. They suggested that the appellant could have applied for a refund and then repaid the service tax with interest. They cited legal precedents to support their position.

The Tribunal considered the Board Circular and a previous Tribunal decision, determining that the procedural lapse of mentioning the incorrect assessee code should not be treated as short-payment of service tax. The Tribunal set aside the impugned order, allowing the appeal and directing the adjudicating authority to make the necessary adjustment in favor of the appellants. The Tribunal distinguished other cited legal decisions as not applicable to the present case, ultimately providing relief to the appellants based on the specific circumstances and legal provisions discussed.