Adjustment of excess amount paid towards service tax liability [Sub-rules (4A) & (4B) of rule 6]:

Where an assessee has paid to the credit of Central Government any amount in excess of the amount required to be paid towards service tax liability for a month or quarter, as the case may be, the assessee may adjust such excess amount paid by him against his service tax liability for the succeeding month or quarter , as the case may be. However, self adjustment of excess credit shall be subject to the condition that the excess amount paid is on account of reasons not involving interpretation of law, taxability, valuation or applicability of any exemption notification.