Ratification of remittance made wrong accounting code/Central Excise Registration number instead of Service Tax code number — Procedure- Regarding - Service Tax - Trade Notice No. 14/2016

Principal Commissioner of Service Tax, Kolkata-I Trade Notice No. 14/2016 Dated 22-8-2016 Subject : Ratification of remittance made wrong accounting code/Central Excise Registration number instead of Service Tax code number - Procedure- Regarding With reference to various representations received from registered service providers/receivers and Central Excise assessees for rectification of mistakes occurred during remittances of Service Tax or Central Excise duty against wrong accounting heads and or incorrect registration numbers, Trade Notice No. 06/2016, dated 21-3-2016 had been issued based on C.B.E. C. s Circular No. 58/07/2003 (F. No. 157/2/2003-CX A), dated 20-5-2003 clarifying that in such instances the matter should be sorted out with the PAO and the assessee need not be asked to pay Service Tax again. Recently a communication has been received from e-PAO, Service Tax Mumbai that e-payment made by the assessee under wrong assessee code could not be regularised. Hence only in the following instances, rectification of remittance is available : 1. Service Tax has been paid in the wrong accounting code of a different service than which is rendered, where the mistake has occurred under same registration number. 2 Service Tax has been paid against incorrect Accounting Minor Heads of Education Cess, interest, penalty Secondary Higher Education Cess and or vice versa. For eg : interest paid under Secondary Higher Education Cess etc. 3 Service Tax has been paid against Central Excise Registration number of the assessee instead of Service Tax Code Number or vice versa (major heads - Customs-037, Central Excise-038 and Service Tax - 044). In such instances, in order to ensure uniformity and to avoid hardships to the assessees, the following procedure is prescribed to be followed by the assessees and the field formations in supersession of earlier Trade Notice no. 06/2016, dated 21-3-2016. Case-01 The assessee should represent (Through Range and Division) to the Commissioner of Central Excise and Service Tax, describing the mistake occurred/reasons for such errors along with certified copies of the remittance challans, ST-3 Returns for the relevant period and any other document pertains to the issue to establish the genuine mistake and to ratify the error. Case-02 Same as above. Case-03 The assessee should produce the certified copies of the relevant remittance challans of both Central Excise and Service Tax payments for that particular period for which rectification of errors is requested in addition to copies of Service Tax and Central Excise Returns and any other documents in support of their claim. On obtaining the representations from the assessees seeking ratification/rectification of wrong remittances made either in Service Tax or in Central Excise, the field formations should follow the procedure below : 1. It must be ensured that the gross value and the services are correctly mentioned in the respective returns. 2. The assessment regarding the actual payment of duties have been scrutinized. 3. The authenticity of the remittance challans enclosed, along with proof of payment. 4. The returns for the relevant period are furnished incorporating the details of the payment challans mentioned for the correction. 5. Any other document furnished by the assessee or required to be verified by the Department in order to effect the rectification. A verification certificate/report from the Range Officer concerned, endorsing/ recommending to the effect above may invariably be attached with the representation of the assessee. The representation seeking rectification/ratification received thus above after necessary correction in the Ledger (Book of accounts) maintained by the assessee at Commissionerate level, will be forwarded to the e-PAO, Mumbai or e-PAO, Chennai respectively for Service Tax and Central Excise matters. In case of request for changing major heads between Central Excise and Service Tax or vice versa, the matter may be taken up with the Principal Chief Controller of Accounts, CBEC, New Delhi. As regards issues on rectification due to remittances in the wrong accounting codes, the matter has been taken up with the Controller of Accounts, New Delhi. All the Trade Associations are requested to bring the contents of this Trade Notice to the attention of their members in particular and the Trade in general. (Bijay Kumar) Principle Commissioner Service Tax-I, Kolkata