2011 (7) TMI 308

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..... tax should be paid in cash - Accordingly, the respondents paid the service tax in cash and thereafter, proceedings were initiated for demand of interest on the ground that reversal of cenvat credit does not amount to payment of tax and since service tax was not paid by the due date, interest is payable - Since the respondents did not retain any money due to the Government and it was only a proced .....

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..... nd of interest on the ground that reversal of cenvat credit does not amount to payment of tax and since service tax was not paid by the due date, interest is payable. Learned Commissioner (Appeals) allowed the appeal filed by the respondent and took a view that no interest is required be paid. For coming to this conclusion, he observed that it cannot be said that there was delay in payment of serv .....

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..... cash and reversal of debit entry was only an action by which procedural irregularity was rectified. Since the respondents did not retain any money due to the Government and it was only a procedural irregularity, I follow the view taken by the Tribunal in the case referred to 3. above and did not consider it fit to uphold the impugned order. Accordingly, the appeal filed by the Revenue is reje .....

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