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2017 (1) TMI 714 - AT - Service TaxInterest on credit availed - SIM cards - SIM cards are used for providing Telecommunication Services - whether inputs or capital goods? - whether credit availed on SIM cards admissible? - Held that: - mere taking of credit which has been reversed without utilization, no liability for payment of interest or penalty would arise thereof. - the case of the appellant is squarely covered by the decision of the jurisdictional Bench of the Hon’ble High Court of Karnataka in the case of Bill Forge Pvt. Ltd. [2011 (4) TMI 969 - KARNATAKA HIGH COURT], where it was held that Without the liability to pay duty, the liability to pay interest would not arise. The liability to pay interest would arise only when the duty is not paid on the due date. If duty is not payable, the liability to pay interest would not arise - demand of interest set aside - appeal allowed - decided in favor of appellant.
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