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2015 (12) TMI 1572 - AT - Service TaxDemand of interest and imposition pf penalties - for the period post 18.04.2006 - raised an amount as External Commercial Borrowing (ECB) in the form of Convertible Bond - to raise ECB, appellant had paid amounts to various entities situated abroad as an amount towards the service rendered - appellant discharged service tax liability and has also availed the CENVAT credit of such service tax liability on the amount paid as tax under reverse charge mechanism. Held that:- appellant's challenge to demand of interest is basically on the ground that the said demand of tax was not sustainable on the ground that the show-cause notice is issued for the demand of tax on 11.03.2008 while the fees were paid to various entities during the period October 2004 to September 2006 and the demand of tax was paid on 28.05.2007. We find strong force in the contentions raised by the appellant in as much if the appellant would have taken the plea of limitation, he may have succeeded and no demand of tax would be sustainable on him by applying the judgement of Tribunal in the case of Jain Irrigation Systems Ltd [2015 (9) TMI 160 - CESTAT MUMBAI]. Therefore, we set aside the demand of the interest and the penalties imposed on the appellant by the impugned order which is challenged before us. - Appeal disposed of
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