𝗖𝗘𝗦𝗧𝗔𝗧 𝗔𝗵𝗺𝗲𝗱𝗮𝗯𝗮𝗱 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗔𝗱𝗷𝘂𝘀𝘁𝗺𝗲𝗻𝘁 𝗼𝗳 𝗘𝘅𝗰𝗲𝘀𝘀 𝗧𝗮𝘅 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "Adjustment of excess tax paid towards future tax liability is valid when appropriately documented and informed by contractual obligations."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: Larsen & Toubro Limited 𝗜𝘀𝘀𝘂𝗲: Was the adjustment of excess service tax paid valid? 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: Contract with M/s VISA Power Ltd. included supply and service portions.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal upheld L&T's adjustment of excess tax payment, emphasizing that contract terms are binding if lawful. Under Rules 6(4A) and 6(4B) of the Service Tax Rules, 1994, the adjustment was valid, with no dispute on the total advance. The appeal was allowed, validating tax adjustments.

𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼: 𝗧𝗶𝘁𝗹𝗲: Larsen & Toubro Limited vs. Commissioner of Central Excise & ST, Vadodara 𝗦𝗘𝗥𝗩𝗜𝗖𝗘 𝗧𝗔𝗫 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 13774 of 2014-DB 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 08 June 2023 📜 This decision confirms that excess service tax payments can be adjusted against future liabilities when based on valid contractual directions.