Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2018 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 660 - AT - Service TaxDemand of Interest - delayed payment of service tax - renting of immovable property services - assessee claimed bonafide belief and stated that the delayed payment of tax was due to legal uncertainty about the taxability of the service - absence of any letter requiring assessee to pay interest by Revenue - Section 73(3) of FA - Held that:- After receiving the intimation on 18.6.2012, the department should have determined the interest payable and communicated to the assessee and if the assessee did not pay the same, they had one year period for issuance of show cause notice. In this case, without intimating to the assessee that he is liable to pay interest and they should pay the same, the Officers proceeded to issue show cause notice straightaway. Section 73(3) contemplates non issue of show cause notice in the event of an assessee paying full amount of service tax with interest. When the section and provisos are read together, in this case also, a letter should have been written to the assessee to pay interest and if they fail to pay the interest, show cause notice should have been issued. There is no evidence on record to show that any such letter was written by the Revenue. Time limitation - SCN was issued on 24.08.2016 demanding interest for the period from 1.6.2008 to 30.09.2011 - Held that:- There is no ingredient of mis-statement or suppression of facts with an intent to evade payment of service tax - the issue is squarely covered in favor of the appellant laying down that the period of limitation would apply to the demand of interest. There are no justification for confirmation of interest amount - appeal allowed - decided in favor of appellant.
|