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2020 (2) TMI 608 - AT - Service TaxDemand of service tax alongwith interest - amount in dispute has already been paid by the respondent but the interest is not paid - recovery of interest. As per (ASHOK JINDAL) - MEMEBR (JUDICIAL) - HELD THAT:- The amount in dispute has already been paid by the respondent. In these circumstances, we do not find any merit in the appeal, accordingly, the appeal is dismissed. As per (SANJIV SRIVASTAVA) - MEMBER (TECHNICAL) - HELD THAT:- The respondents though have paid the paid the tax/ duty have not deposited the interest due on account of delay in payment of the tax/ duty. Hence when Commissioner (Appeal) has set aside the proceedings for demand of tax/ duty, it would impact the recovery of interest which has not been paid by the respondents. It is well settled law and Hon’ble Apex Court has constantly held that demand of interest under a fiscal statue is absolute liability and arises on the account of late payment of tax from the due date. Since the liability is absolute no separate proceedings are required for recovery of interest. In case of admitted duty/ tax liability if there is delay in payment of duty/ tax, the revenue should proceed to recover the interest due on the said admitted tax/ duty along with the admitted duty/ tax. Thus, recovery of interest under section 11AB of the Central Excise Act, 1944/ Section 75 of the Finance Act, 1994 is not a consequence of confirmation of demand made in terms of Section 11A of Central Excise Act, 1944/ Section 75 of Finance Act, 1994 but is a consequence of delay in payment of duty/ tax. Hence just for the reason that Commissioner (Appeal) has held that demand of duty/ tax cannot be sustained for the reason that assessee has already paid the duty/ tax would not come in the way of recovery of interest that I due for the reason of delay in payment of tax. The interest that is due needs to be recovered as sums due to the government by application of provisions of Section 11 of Central Excise Act, 1944.
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