𝗖𝗘𝗦𝗧𝗔𝗧 𝗖𝗵𝗮𝗻𝗱𝗶𝗴𝗮𝗿𝗵 𝗥𝘂𝗹𝗶𝗻𝗴 𝗼𝗻 𝗣𝗿𝗼𝘃𝗶𝘀𝗶𝗼𝗻𝗮𝗹 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝗯𝘆 𝗕𝗦𝗡𝗟 📢 𝗧𝗵𝗲 𝗧𝗿𝗶𝗯𝘂𝗻𝗮𝗹 𝗵𝗲𝗹𝗱: "Provisional payments may result in adjustments of excess or short payments; this does not constitute short payment of service tax. Therefore, no demand for interest or penalty can be raised."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗼𝗺𝗽𝗮𝗻𝘆: Bharat Sanchar Nigam Limited (BSNL) 𝗜𝘀𝘀𝘂𝗲: Whether there was a short payment of service tax and if interest and penalties could be levied? 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝘆: The appellant, BSNL, made service tax payments on a provisional basis due to delays in collecting telephone bill payments from post offices, banks, and collection centers. A show-cause notice alleged short payment of service tax.

⚖️ 𝗝𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁: The Tribunal ruled that provisional payment adjustments, with occasional excess or short payments, do not constitute short payment of service tax. BSNL's adjustments caused no revenue loss, and a similar unchallenged ruling supported their case. Consequently, the service tax demand, along with interest and penalties, was set aside, and the appeal allowed.

📜 𝗖𝗮𝘀𝗲 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 𝗧𝗶𝘁𝗹𝗲: General Manager Telecom, BSNL vs. CCE & ST- Chandigarh 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗧𝗮𝘅 𝗔𝗽𝗽𝗲𝗮𝗹 𝗡𝗼. 77 Of 2010 𝗢𝗿𝗱𝗲𝗿 𝗗𝗮𝘁𝗲: 20 April 2023 📜 This ruling clarifies that provisional payments with subsequent adjustments do not qualify as short payments and cannot attract interest or penalties.