Short tax paid can be adjusted with the excess tax paid in subsequent months/quarters

Last updated: 09 June 2023

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The CESTAT, Delhi ruled that a company, M/s. B.L. Kashyap & Sons Ltd., could adjust short paid service tax with excess tax paid in later months or quarters. This was permitted under Rule 6(4A) of the Service Tax Rules, as the company had rectified the shortfall and paid the due interest. The tribunal found that the initial incorrect filing was a procedural error and did not prevent the adjustment.

Court :
CESTAT, Delhi

Brief :
The CESTAT, Delhi in M/s. B.L. Kashyap & Sons Ltd. v. Commissioner of Service Tax [Service Tax Appeal No. 54315 of 2014 dated May 30, 2013], while quashing the impugned order, set aside the liability, and held that the appellant is eligible to adjust the short tax paid with the excess tax paid in subsequent month/quarter in line with the provisions of Rule 6 (4A) of the Service Tax Rules, 1994 ("the Service Tax Rules") as the appellant has made good the service tax short paid by them, along with interest.

Citation :
Service Tax Appeal No. 54315 of 2014 dated May 30, 2013

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