Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2015 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (1) TMI 458 - CESTAT MUMBAIDemand on interest and penalty on late payment of service tax - Revenue neutral exercise - availability of cenvat credit - reverse charge mechanism - Held that:- Simply because a situation leads to revenue neutrality does not imply that tax need not be paid on time. When law requires tax to be paid it has to be paid as per time specified. The Ld. Counsel has relied on the case of Reliance Industries (2014 (1) TMI 52 - CESTAT AHMEDABAD) to say that interest is not demandable. I note that this case refers to situation where the question of payment of duty on intermediate products was the issue. In the facts of the present case, it is clear that the tax has been paid much later than the date on which it was due. The time to be considered for interest purposes is this time between the due date and the payment day. It cannot be said that the Government has not lost interest between the two dates, notwithstanding the fact that Cenvat Credit could have been availed on the same date if duty had been paid on time. This aspect was not considered in the citations referred. I hold that interest is payable under Sections 75 of the Finance Act. - Although the appellants are paying regularly service tax regularly, two transactions were missed due to oversight and tax could not be paid in respect of these two transactions. Intention to evade payment of duty is not established when clearly the appellants are eligible for taking Cenvat Credit as soon as duty is paid by them. The case of Patel Alloys Pvt. Ltd. (2013 (12) TMI 167 - CESTAT AHMEDABAD) supports this case. - Interest is payable; however penalties are set aside - Decided partly in favour of assesse.
|