Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2024 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (3) TMI 348 - CESTAT KOLKATASeeking adjustment of interest amount paid - levy of penalty u/s 78 - demand with interest paid before issuance of SCN - HELD THAT:- Department was having full knowledge that out of the demanded amount of Rs. 18,47,186/-, the Jurisdictional AC himself has sanctioned refund of Rs. 7,96,757/-. The Adjudicating Authority has erroneously applied the interest rate of 18%, 24% and 30% the Appellant was a small party with annual turnover of less than Rs. 60 lakhs. From the Table given at Page 8 of the OIA (Page 25 of the Appeal Book), it is seen that the turnover of the Appellant was less than Rs.60 Lakhs. Therefore, the Appellant is required to pay 18% interest less 3% concession given to them (Net interest @ 15%) - the Appellant has correctly calculated and shown the interest payable in the Table at Page No. 11 & 12 of the Appeal Book. As per this Table, the interest payable is only Rs. 2,24,600/-.Admittedly, the Appellant has paid Rs. 94,462/- on 09/06/2017. Therefore, the Appellant is directed to pay the balance interest amount of Rs. 130,138/- on or before 15th April 2024. Penalty imposed under Section 78 - HELD THAT:- It is found that the Appellant has carried a bonafide belief that they were providing Service Tax to the Government of Tripura. They did not collect any Service Tax from them. Immediately on being pointed out, they have paid the entire Service Tax which resulted in excess Service Tax of Rs. 7,96,757/-. Even to get this refund of this excess payment, they had to run from pillar to post. Considering these facts, there are no case has been made out against the Appellant towards suppression. Therefore, the penalty of Rs. 10,49,587/- imposed under Section 78 set aside. The Appellant is required to pay the balance interest of Rs. 130,138/- on or before 15/4/2024 - penalty imposed under Section 78 is set aside - appeal disposed off.
|