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2018 (10) TMI 661 - AT - Service TaxDemand of interest on delayed payment of service tax - whether the demand of interest on the service tax by the Department is sustainable? Held that:- The service tax law does not provide any limitation for demand of interest on service tax - However, the Hon’ble Supreme Court has, in the case of T.V.S. Whirlpool Ltd., [1999 (10) TMI 701 - SUPREME COURT OF INDIA] laid down the law that the period of limitation which applies to the principal amount also apply to the interest thereon. This judgment was passed under the Customs Act which also did not have the period of limitation for demand of interest during the relevant period. The demand of interest is liable to be set aside on the ground of limitation of time because not only is there no evidence of elements required to invoke extended period in the show cause notice, there is not even any allegation that the interest has not been paid by reasons of fraud, collusion, willful misstatements etc. - appeal allowed - decided in favor of appellant.
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