Excess tax paid is adjustable in subsequent months in terms of rule 6(4A) of Service Tax Rules

Larsen & Toubro Limited Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad) CESTAT Ahmedabad held that excess tax paid is adjustable in terms of rule 6(4A) of the Service Tax Rules, 1994 against tax liability arising in subsequent months. Facts- The Appellants were granted a power project by M/S Visa Power Limited (VISA). As per Letter of Award (LOA), the ‘Total Contract Price’ for the complete scope of work was finalized to be Rs. 1610.01 Crores, 5% (Rs. 80.50 Crores) of which was agreed to be paid in advance. The contract involved supply of materials as well as erec...