2013 (2) TMI 609

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..... pellants. - Technically, there is a violation of Rule 4A inasmuch as the credit has not been adjusted in the succeeding period but the appellants have provided a reasonable explanation as to why this could not be done since the settlement of the value of the services was arrived only on 28-6-2008. - The only other violation is regarding not providing intimation to the jurisdictional officers withi .....

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..... ctober 2006 against which they paid the service tax without receiving the value thereof. As such, it is the case of the appellants that there was an excess payment of service tax in the month of October 2006. There was a protracted period of correspondence with their customers and ultimately in the month of June 2007 the appellants agreed to the lesser payment made by the customers as intimated to .....

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..... Rs. 1,96,749/- which is in excess of the monetary limit of Rs. 50,000/-. 4. The learned counsel appearing for the appellants states that the impugned amount is covered by Rule 4B(ii) of the Service Tax Rules, 1994 inasmuch as they are registered under Rule 4(2) and hence the monetary limit for making adjustment does not apply in their case. As regards the question of making adjustment in the suc .....

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..... have paid any tax before receiving the payments. He states that there cannot be any excess payment by the appellants in view of the statutory provisions. 6. After hearing both sides and perusal of case records, I find that there is no dispute that the appellants have paid excess service tax in the month of October 2006 which has been recorded in the impugned orders. In view of clause (ii) of Ru .....

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..... d amount to recovering tax for the same services twice. At the most, for the minor infraction of the rule, some penalty could have been imposed on the appellants but the lower appellate authority has set aside the penalty in its entirety and the Department is not in appeal against the same. 7. Accordingly, I set aside the impugned demand and interest and allow the appeal. (Dictated and pronoun .....

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