9911796707
TMI Blog2014 (7) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs.14,62,774/- of their own. However, they were required to pay service tax for the said period of only Rs.4,76,933/-. In the result, they paid excess service tax of Rs.9,85,841/-, The excess paid service tax has been adjusted by the appellant for the payments of service tax of service provided during the period October 2002 to March 2003. The revenue is of the view that the excess service tax paid by the appellant for the earlier period cannot be adjusted for the future payments, therefore, letter dated 09.03.2004 was issued to them after scrutinizing the service tax returns wherein a query was raised that for the period ending March 2003 they have short paid the service tax, therefore they are required to pay service tax was short paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel and submits that the case of the appellant is not covered by Rule 6(3) of the Service Tax Rules, 1994. If they have paid excess service tax in the earlier period, they could have filed the refund claim for the excess payments and both the lower authorities have rightly demanded from them the short payment of service tax in the impugned order. 6. Heard both sides. Considered the submissions. 7. In this case, the assessment took place for the period 2001 - 2002 and it was held by the Adjudicating Authority that the appellant has paid excess amount of service tax of Rs.9,85,841/- on 11.05.2003. The appellant has adjusted the said amount of excess payment of service tax for the period October 2002 to March 2003 for the service tax liabil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tects & Valuers (supra), wherein this Tribunal held that if adjustment of excess service tax is not allowed for future payments, the provisions of Rule 6(3) ibid shall become otiose and non-implementable. As the fact that the excess payment is not in dispute and same has been adjusted for the future liability of Service Tax by the appellant, therefore, to pay Service Tax is only an exercise which created hurdle in the smooth functioning of imposition and collection, as held by the Tribunal. Therefore, the adjustment can be allowed. 9. In these circumstances, I allow the adjustment of excess Service Tax paid by the appellant during the period 2001 to 2002 for the service tax liability to October 2002 to March 2003. In the light of these obs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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