Case Law Details
Urvashi Porwal
Brief of the Case
In the case of M/s. L & T Sargent & Lundy Limited V/s. Commissioner of Central Excise & S.T., Vadodara, it was held that the requirement under Rule 6(4A) and 6(4B) of the Service Tax Rules, 1994 to intimate the department regarding adjustment of excess service tax paid is only procedural in nature and such infringement of the procedure is not serious enough to deny the benefit of sou motto adjustment of excess service tax paid.
Facts of the Case
The appellants herein M/s. L&T Sargent & Lundy Limited had made excess payment of service tax of Rs. 2,49,858/- in May 2010 and subsequently adjusted the said excess amount paid towards payment of service tax during the months of June, July and August, 2010. However, the appellants had not intimated the said adjustment to the department and have suo-moto adjusted the same. Revenue was of the opinion that they are not eligible to do so in terms of Rules 6(4A) and 6(4B) of the Service Tax Rules, 1994 and confirmed the demand of service tax, alongwith interest. Penalties of Rs. 10,000/- under Section 77, and equivalent penalty of Rs. 2,49,858/- under Section 78 of the Finance Act, 1994 were also imposed on the appellants. The Commissioner (Appeals) upheld the demand and equivalent penalty under Section 78, and reduced the penalty of Rs. 10,000/- under Section 77 to Rs. 5,000/-. Aggrieved by the order of the Commissioner (Appeals), the appellants are this Tribunal.
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