25 October 2013
WE HAD TO DEPOSIT RS.7500/- AS 12% SERVICE TAX ON CLEARING & FORWARDING AGENCY (CODE 00440045) AND RS.28/- AS INTEREST FOR DELAYED PAYMENT. DUE TO MISTAKE WE HAD DEPOSITED RS.7500/- IN INTEREST CODE (00440046) , AND INTEREST AMOUNT OF RS.28/- IN SERVICE TAX CODE (00440045.). NOW HOW THIS MISTAKE CAN BE RECTIFIED. DO WE HAVE TO AGAIN DEPOSIT THE 12% SERVICE TAX BEFORE FILING OF HALF YEARLY RETURN, OR WE CAN FILE OUR RETURN USING THE SAME CHALLAN.
25 October 2013
PAYING TAXES AGAIN IS NOT REQUIRED,
1)Wrong accounting code or wrong registration number does not mean tax payable again ,
2)In Guala Closure (India) v. CCE (2008) 228 ELT 39 (CESTAT SMB), assessee paid education cess in head of basic duty. It was held that he is not required to pay duty again. Interest and penalty is not payable as whole exercise is revenue neutral – similar view in Asil Industries v. CCE (2001) 136 ELT 692 (CEGAT) * Pepsico Holdings v. CCE (2010) 255 ELT 299 (CESTAT)
3)– same instruction in CBE&C circular No. 58/7/2003-ST dated 20-5-2003 relating to wrong accounting code in service tax.
4)In Nahar Spinning Mills v. CCE (2009) 240 ELT 131 (CESTAT), duty was paid under wrong head. It was held that when same department is administering both duties, there should be no bar in adjustment of excess duty from one head to other, unless barred by law – relying on South Asian Petrochem v. CCE (2007) 219 ELT 991 (CESTAT) [Appeal against order of Tribunal in case of South Asian Petrochem was dismissed by Calcutta High court (2009) 233 ELT A133 (Cal). SLP filed by department against judgment of High Court has been dismissed by SC on 14-12-2009 (2010) 252 ELT A73 (SC)] In Coats Viyella India Ltd. v. CCE 1999(111) ELT 90 (CEGAT), it was held that duty paid under one head can be adjusted against liability in other head as both are excise duties.
[Decision in case of Basic duty and Additional Duty, but should be applicable to all duties payable as excise duties].
5)In CCE v. Veena Industries (2012) 34 STT 549 = 18 taxmann.com 264 (CESTAT), assessee paid service tax under ‘erection, commissioning or installation service’, instead of correct heading which was ‘management, maintenance or repair’ service. It was held that adjustment of payment should be made in correct account code. Paying tax again is not required.
25 October 2013
Sir, thank you very much for the reply. Sir please also guide that (1) at present should we file our half yearly return using the same challan ? (2) we have to get this mistake rectified whom should we apply for rectification of mistake , is there any particular procedure ?
25 October 2013
In my opinion,,[i have not faced practically this situation] . . 1)you can file ST3 with the available challans . . 2)left open for other experts,lets see any of expert will help us on how to rectify . . . .
25 October 2013
Please file the ST-3 with the available challan. Simultaneously , inform in writing the jurisdictional Superintendent regarding the mistake in the challan and the said officer is supposed to inform the PAO for necessary correction in Govt records.
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