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2016 (5) TMI 785 - CESTAT NEW DELHIDemand of interest - Appellant contended that no interest is recoverable in such a situation where it did not receive the amount from SAIL as SAIL directly made the payments to the sub-contractors and the interest is chargeable with reference to the date of receipt of the payments. Held that:- SAIL made some of the payments directly to the sub contractor as per the High Court’s order but such payments were made obviously on behalf of the appellant. It was for this reason that the sub-contractors did not ask the appellant to make payments for services rendered (as per sub-contracts between them and the appellant) for which they directly got payments from SAIL and the appellant also did not ask SAIL to pay it for the services rendered as per its contracts with SAIL for which SAIL directly paid to the sub-contractors. Thus it was the appellant liability towards the sub contractors which was being discharged by SAIL by making direct payments to sub-contractors. So, the appellant was deemed to have received those payments and therefore was liable to pay interest in case service tax relating to such payments was paid later than the due date. - Decided against the appellant
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