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2019 (5) TMI 665 - AT - Service TaxDemand of interest - period of limitation - service tax dues were paid by appellant but interest for such delay payment not made - HELD THAT:- There is no time limit in Finance Act 1994 for issuing demand of interest. However, Hon’ble High Court of Delhi has held in the case of HINDUSTAN INSECTICIEDES LTD. VERSUS COMMISSIONER CENTRAL EXCISE, LTU [2013 (8) TMI 225 - DELHI HIGH COURT] that the demand for interest must be raised within the same time limit as taken of tax itself. In other words, the demand can be raised within 18 months (as applicable during the relevant period) if there are no elements of fraud, collusion, wilful mis-statement and within 5 years if these elements are present. - In the impugned order the adjudicating authority held that these elements were not present and as well as dropped the proposal to impose penalty under Section 78. Therefore, only the normal period of limitation of 18 months applies. The 18 month period must be reckoned with respect to the relevant date indicated in Section 73(6) In the present case, since the assessee has filed periodical returns the date on which the return is so filed becomes the relevant date. The first set of returns were filed in the instant case on 19.09.2013 and therefore 18 months from this date will be 18.03.2015. The show cause notice was issued on 16.03.2015 within the normal period of limitation - demand of interest upheld. Penalties u/s 76 and 77 of FA - HELD THAT:- The main ground on which it has been pleaded is that they had difficulties in getting payments for their services from their clients. This is not substantiated by any documents apart from the assertion by the appellant before me and before the adjudicating authority. The conduct of the appellant also does not inspire much confidence because if there were difficulties and do they had paid the service tax late, they should have also paid the interest along with it instead of waiting till a show cause notice is issued by the department and then contesting it - Penalties upheld. Appeal dismissed - decided against appellant.
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