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2020 (10) TMI 199 - CESTAT MUMBAIDelayed payment of service tax - case of Revenue is that the Appellant herein was debiting its Books of Account every six months, the Appellant had deliberately delayed the payment of service tax and therefore, was liable to pay interest on such delayed payment under Section 75 of the Finance Act, 1994 - HELD THAT:- The Appellant discharges its service tax liability by debiting its Cenvat credit account. The Appellant debits its Cenvat register every month, however, in its Books of Accounts, the Appellant passes the relevant journal entry only every six months. Further, I find that the Appellant maintained sufficient credit balance in their Cenvat credit account at all times. Therefore, the Appellant had no intention to evade the payment of service tax. Since, the Appellant duly debited its Cenvat register as per Rule 6 of the Service Tax Rules, 1994, the corresponding entry being made by the Appellant in its Books of Accounts cumulatively for six months, can at best qualify as a procedural irregularity and can in no way constitute a statutory violation, as alleged by the Department - the Appellant had filed the statutory returns within the stipulated time period and the monthly liability had been properly disclosed in such returns. The manner in which the Appellant was recording the journal entry in its Books of Accounts alone, in the absence of any statutory violation, is not sufficient to conclude that there was a delay in payment of Service Tax on the part of the Appellant - Appeal allowed - decided in favor of appellant.
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