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2019 (1) TMI 320 - AT - Service TaxInterest on Delayed payment of service tax - payment of tax made before issuance of SCN - amendment in Section 80 of the Finance Act, 1944 - time limitation - Held that:- Section 80 of the Finance Act, 1944 makes it clear that once the payment has been made before the issuance of Show Cause Notice no question of any penalty nor of interest at all arises - The payment in the present case was made after the said amendment but before the issuance of Show Cause Notice. No doubt the payment is for the period prior the said amendment but since the amendment is beneficial in nature, retrospect effect can be given to the said amendment. Therefore, no question of imposition of penalty at all arises. Time limitation - Held that:- SCN is apparently beyond the normal period of one year. There is the apparent acknowledgment on the part of the Adjudicating Authority about the decision of Delhi High Court as has been impressed upon by the appellant. In the given circumstances, the non-payment was actually due to the said prevalent confusion. There is nothing on record which may be considered as an evidence qua positive act of the appellant of having an intention to evade the duty for the said period - SCN definitely barred by time. The Adjudicating Authority below are held to have committed an error while confirming the demand of interest, ignoring the legislative intent under Section 73 of the Act - appeal allowed - decided in favor of appellant.
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