As per Section 73A
Service tax collected has to be paid to the credit of the Central Government in the following cases
- Person liable to pay service tax has collected service tax in excess of the service tax assessed or determined and paid on any taxable service or
- Any person has collected the service tax which is not required to be collected [Sub-section (1) and (2)].
Procedure in case person does not pay such amount
- Show cause notice shall be served by the Central Excise Officer.to such person
- The notice will require such person to show cause why the said amount, as specified in the notice, should not be paid by him to the credit of the Central Government
- On receipt of such notice, person makes representation to Central Excise Officer
- The Central Excise Officer shall consider the said representation and then determine the amount due from such person.
- Such amount will however, not exceed the amount specified in the notice.
- Thereupon, such person shall pay the amount so determined
Adjustment of Tax Paid
Such amount shall be adjusted against his service tax liability if any
Balance amount if any shall be
credited to the Consumer Welfare Fund,
refunded to the person who has borne the incidence of such amount
as per the provisions of section 11B of the Central Excise Act, 1944).
Procedure for Refund
Such refund is granted only if person makes application for refund within 6 months of date of public notice to be issued by Central Excise Officer for refund of excess amount.