TMI Blog2014 (10) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... the date of debit in the CENVAT account which is the date of payment of tax. Merely, because the credit is available in the books of accounts, it does not mean that the tax has been paid. Therefore, the liability to pay interest has to be computed from the due date of payment of tax to the actual date of payment. If viewed from this perspective, in the present case, inasmuch as the tax has been p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R) JUDGEMENT Per: P R Chandrasekharan: This appeal has been filed by Revenue against Order-in-Original No: 25/STC/BR/08-09 dated 29/09/2008 passed by the Commissioner of Service Tax, Mumbai 2. The respondent herein, M/s. Toyo Engineering Corporation Ltd., was required to discharge service tax liability on the taxable service provided by them. For the month of October 2006 the ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had enough CENVAT credit accruing to them on payment of the service consideration to the service provider to discharge of tax liability, the liability to pay interest would not arise on account of delay to the extent of 102 days and 10 days. Accordingly, he confirmed only an interest amount of ₹ 51,403/-. However, on actual calculation of the interest liability from the due date to the actu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The learned consultant for the respondent submits that the respondent had CENVAT credit available in their books of accounts on the respective days. However, the debit of the CENVAT credit towards tax liability was made only on 15/02/2007. Inasmuch as the respondent had enough balance in their books of accounts, the question of interest liability would not arise. 5. We have carefully consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax and for these delays, the respondent is certainly liable to pay interest. Therefore, the impugned order is set aside to the extent of dropping of interest liability and we hold that the respondent is liable to pay interest for the above period of 102 days and 10 days respectively as proposed in the show cause notice. 6. Thus, the appeal filed by the Revenue is allowed. (Dictated in Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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