Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2023 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (8) TMI 901 - AT - Service TaxChargeability of Interest - provisions made in the books of account of the appellant towards the payment of Royalty and Technical Knowhow fees - HELD THAT:- The facts, as appearing from the Statement-of-Facts and the orders of the lower authorities, indicate that the appellant had short-paid the tax even though the same was apparently on the provision made. Whether the provision made by the appellant on the payments of Royalty and Technical Knowhow is amenable to Service Tax has not been questioned nor it is found that any arguments advanced in this regard. When the assessee, without questioning the taxability, has paid part of the tax, it is incumbent for the assessee to remit the balance tax portion upon being pointed out, with interest in terms of Section 75. Thus, when there is a delay of the payment, then the same has to be remedied with the payment of interest on such belated payments in terms of Section 75 of the Finance Act, 1994. The appellant, admittedly, has not challenged the levy of tax, but only questioned the interest which does not merit consideration - It is found that interest under Section 75 is necessarily linked to the duty payable, such liability arises automatically by operation of law, as held by the Hon’ble Apex Court in the case of Commissioner of Central Excise, Pune v. M/s. SKF India Ltd. [2009 (7) TMI 6 - SUPREME COURT], which is also applicable to belated payment of interest even under the Service Tax Act. There are no merit in the appellant’s case and therefore, the same is dismissed.
|