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2015 (1) TMI 41 - AT - Service TaxLevy of interest on service tax demand when the assessee has sufficient balance in CENVAT Credit - payment of service tax made quarterly through their CENVAT credit account was delayed for which the assessee was asked to pay interest on service tax u/s 75 of the Finance Act, 1994. - Held that:- It is observed from the case records that appellant had sufficient balance to debit that portion of duty demand which was due in the relevant month. No contrary evidence has been brought on record by the Revenue that appellant was not having sufficient balance in its CENVAT account to debit that differential duty in the CENVAT account. Even in a clandestinely evasion cases also the CENVAT credit of inputs/ input services admissible, during the period of offence, is allowed to be abated from the total duty demanded even at the appeal stage. The interest payable is only calculated on the duty liability finally determined and not with respect to the duty demanded in the show cause notice. In this case appellant stands on a better footing as the CENVAT credit was available in the CENVAT account but could not be debited. It has to be thus held that interest is not payable with respect to duty required to be debited in the CENVAT Credit Account provided sufficient balance was available in the CENVAT Credit Account. Nothing has been brought on record that such a credit was not available in the CENVAT Account during the relevant period for debit. - Decided in favour of assessee.
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