Double payment made by mistake

This query is : Resolved

B S MANJUNATH (Querist)
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07 May 2012 one of my client has paid Service tax twice on the same turnover - once in March 2011- Q 4 end FY 2010-11 based on provisional invoice and again in April 2011 for Q 1 of 2011-12 based on receipts & final invoice. It is in two different FY & two different quarters - both Turnover & Service tax shown/accounted twice and Ser tax paid twice.

How to correct the mistake now? What is the procedure to be followed? What options available - Revised Return? Rectification ? Appeal ? & how to proceed.

Service tax excess paid Amount involved is around Rs.50,000.

Kindly advise. ( with references of support case laws & relevant sections)

Thanks & regards.

B S MANJUNATH, CA

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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07 May 2012 Your case falls under Rule 6(4A) of Service Tax Rules, 1994. As per this Rule If any amount is paid to the Government in excess of the amount of service tax required to be paid the such excess amount can be adjusted against service tax liability for succeeding month or quarter. The limit for adjustment upto 31.03.2012 was 200000. Since your period was prior to 31.03.2012 the limit is applicable in your case also. But unfortunately since excess amount could be adjusted only for service tax liability of next month i.e. May 2012, this option of adjustment is now not available to you.

The only option available is to apply for refund claim of Rs. 50000 on grounds of natural justice under Section 11B of Central Excise Act, 1944 with sufficient supportive evidence and also proof that burden of excess payment made has not been passed to any person. Application has to be made to jurisdictional range office