7.1 Normally
under self-assessment scheme, the service taxpayer himself assesses his tax
liability and pays the same (a) for the period; and (b) by a date that has been
stipulated. However, if an service taxpayer is not in a position to determine
the service tax liability, say, for the reason that valuation or classification
of taxable service or issue of admissibility of an exemption notification could
not be determined (or any such other reason), he may opt for assessment of
service tax on provisional basis after obtaining an order from jurisdictional
Deputy Commissioner/ Assistant Commissioner, in terms of such order. The
assessment in such case would continue to be provisional till the issue is
finalized and upon such finalization if the tax liability arises more than what
has been paid by the service taxpayer on provisional assessment basis, the
service taxpayer would pay the differential amount along with applicable
interest else, if the service tax paid on provisional assessment basis is more
than the finalized service tax liability, the differential amount would be
refunded by the department subject to provisions relating to refund of
service tax.