Service Tax deposited against a wrong assessee code - No Remedy?
YESTERDAY's DDT story on this subject raised considerable interest, reaction and perhaps a little confusion. Several Netizens drew my attention to CBEC Circular No. 58/7/2003-ST dated 20.05.2003, wherein the Board had clarified that the assessee need not be asked to pay again, if he has paid the Service Tax under a wrong accounting code and the matter should be sorted out with the PAO.
First of all we should understand the Codes;
1. Accounting Code - This is used for each service and for Education Cess and Secondary and Higher Education Cess. There are 120 codes for services and two for cesses. In each service there are separate codes for Tax Collection, other receipts, penalties and refunds.
2. Assessee Code/ Service Tax Code: This is the 15 digit PAN based Registration Number for each assessee.
So, the accounting code is for a service and the assessee code is for an assessee.
Now the hot question was payment of Service Tax under the wrong
1. Accounting code
2. Assessee/Service Tax Code.
If the payment is made under the wrong code that is if you pay Service Tax under the code for cargo handling instead of goods transport, the department is prepared to condone your lapse and the PAO will set right the mistake, but if you pay the tax under a wrong assessee code - you are doomed.
Even when the assessee paid the tax under a wrong assessee code, in a particular case, the Commissioner (A) allowed the party's appeal. Strangely this order of the Commissioner (A) was accepted by the Department and not appealed against. Please see 18.07.2013
It is this kind of wrong payment for which the Mumbai Service Tax Commissioner says that there is no remedy.
There are lots of instructions and clarifications from the e-PAO and various Central Excise Officers doing the rounds.
In any case, when the Government has once received the tax on a service under whatever service tax code, there is no meaning in asking an assessee to pay the tax again.