2008 (6) TMI 55 - AT - Service Tax

Delay in payment of tax - Commissioner (A) set aside penalty & interest this Bench in similar cases has upheld the demand of interest because Section 73(3) contemplates a situation where both tax & interest are paid after the lapses are pointed out - held that commissioner is justified in setting aside the penalty by relying upon the Tribunal s decision but he is not justified in waiving interest as there is no any provision for such waiver - assessee has to discharge the interest liability

Summary

The Revenue appealed against Order-in-Appeal No. 87/2007-CE dated 2-3-2007, where penalties and interest were set aside. The Tribunal upheld the demand for interest as per Section 73(3) of the Finance Act, 1994. The appeal was allowed in favor of the Revenue.