Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2016 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 345 - AT - Service TaxDemand of Interest beyond the scope of Show Cause Notice - appellant contended that show cause notice issued only for demanding service tax of amount of ₹ 2,40,780/- though the Order-in-original has appropriated an amount of ₹ 5,10,895/-, the interest cannot be demanded beyond the demand proposed in the show cause notice ie. ₹ 2,40,780/- and submits that the order demanding interest travels beyond the show cause notice - Held that:- It is seen that the recovery of interest of the entire service tax amount of ₹ 5,10,895/- was not covered in the SCN issued. The adjudicating authority has travelled beyond the SCN. Since he has appropriated the entire of amount of service tax, recovery of interest on the entire amount of service tax of ₹ 5,10,895/- is not covered under Section 73 (2) of the Finance Act, 1994. Hence, the appellant is required to pay the interest on the amount demanded in the show cause notice and confirmed by the adjudicating authority. Accordingly, the appeal is allowed. - Decided in favor of assessee.
|