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2023 (9) TMI 1099 - AT - Service TaxNon-payment of service tax - gross amounts collected from the clients for rendering the service on the due date specified in Rule 6 of the Service Tax Rules, 1994 r/w sec. 68 of the Finance Act, 1994 - failure to file ST-3 returns - HELD THAT:- The appellant has paid the service tax involved and the same has been appropriated to Government by the impugned order. Further interest is necessarily linked to the duty payable, and such liability arises automatically by operation of law. As per the Hon’ble Supreme Court's judgment in COMMISSIONER OF CENTRAL EXCISE, PUNE VERSUS M/S SKF INDIA LTD. [2009 (7) TMI 6 - SUPREME COURT] interest is to be paid on delayed or deferred payment of duty for whatever reasons. The status of payment of interest could not be ascertained as the appellant has not indicated the same and they were also not represented before us whenever the matter came up for hearing. One of the issues involved in the appeal is whether "taxes on lands and buildings" in Entry 49, List II of the Seventh Schedule to the Constitution contemplate a tax levied directly on the land as a unit having definite relationship with the land? In a case where the constitutional validity of the levy is yet to be decided the dispute is interpretational in nature. Hence there exists sufficient cause for the appellant not to have paid the tax due on time and there does not appear to have been any intention on their part to evade payment of duty. Hence, they are eligible for a waiver of penalties as per section 80 of the Finance Act 1994. Appeal allowed in part.
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