TMI Blog2009 (6) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... t for payment of service tax. ST-3 returns were assessed vide assessment memorandum order dated 9.3.2002, wherein interest of Rs.18,29,894/- was demanded on the ground that there is a delay in payment of service tax. This delay was due to stay granted by the Hon’ble Madras High Court of operation of the provisions of Chapter V of the Finance Act, 1994 and in particular Sections 66 and 67 (d) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 02, wherein interest of Rs.18,29,894/- was demanded on the ground that there is a delay in payment of service tax. This delay was due to stay granted by the Hon'ble Madras High Court of operation of the provisions of Chapter V of the Finance Act, 1994 and in particular Sections 66 and 67 (d) of the Finance Act vide its order dated 3.2.99. The Commissioner (Appeals) reduced the interest liabili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the ground that in the case of Calcutta Jute manufacturing Company (supra) there was only stay of recovery of arrears while the situation is different when the stay of operation of the provisions of the statute has been granted by the High Court. We cannot bring ourselves to concur with the submissions of the ld. Counsel for the reason that in the Adoni Ginning Factory case (supra), the Electric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y is squarely applicable. Following the apex Court's judgment in the Calcutta Jute Manufacturing Co. case (supra) and the Tribunal's order cited supra in the appellants own case, we hold that interest is payable by the assessee on tax payment due for the period during which the operation of the provisions of statute was stayed by the interim order dated 3.2.99 of the High Court. 3. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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