Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2017 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (4) TMI 897 - CESTAT HYDERABADRenting of Immovable Property Service - interest - penalties - case of appellant is that the appellant did not collect the service tax from the tenants as the tenants refused to pay service tax. For this reason appellants failed to discharge the liability of service tax to the department. However they later paid the service tax along with interest. The interest amount for the period from 08.05.2010 onwards was calculated and paid by appellant. That appellant is not liable to pay interest prior to this date and also not liable for penalty since the service were made taxable with effect from 01.07.2007 retrospectively. Held that: - The Hon’ble Apex Court in the case of Star India Pvt. Ltd.[2005 (3) TMI 10 - Supreme Court], held that interest need not be paid for the liability it is created retrospectively - interest on duty cannot be recovered from the respondents as liability to pay interest is in the nature of a quasi-punishment. The appellant is not liable to pay interest prior to 08.05.2010 and also the penalty. The appellant has paid the interest on the entire demand after 08.05.2010 till payment - the demand of interest and the penalty imposed u/s 76 is unsustainable. However, the late fee imposed u/s 70 of the FA, 1994 upheld. Appeal disposed off - decided partly in favor of assessee.
|