2012 (8) TMI 499

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..... Babbar, Adv. Per: Mathew John: In this appeal filed by Revenue, the dispute involved is the short payment of service tax and delay in payment of service tax on the part of the respondent in collecting and remitting service tax for the period 07/94 to 09/96. As per the adjudication order the service tax amount involved is Rs. 74,693/-. The interest demanded is Rs. 59,774/- plus Rs. 39,44,635/-. F .....

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..... ment only for the period 01/97 to 03/99 and in this matter of provisional assessment the finding of the Commissioner (Appeal) is wrong. Revenue argues that during the period in question there was a short payment of service tax amounting to Rs.74,693/-. Revenue argues that the provisions of the Act is applicable equally to a Department of GOI as it would apply for any other party and hence interest .....

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..... s no further tax amount to be paid by the respondent for the period 07/94 to 03/99. 4. They also argue that during the relevant period the respondent was working as a Department of the GOI and the delay was only in transferring money from one account of GOI to another and there is no case for demanding interest for such delay. The Counsel relies on the decision of the Tribunal in Bharat Sanchar N .....

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..... d by the respondent. So we presume that there are such excess payments. The strict procedure of applying for provisional assessments or refund may not be applied in this case considering the facts that this was initial period of service tax levy and procedures had to evolve and settle. For the period for which assessment are admittedly provisional, Revenue has not finalized such assessments. The i .....

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..... for subsequent period, during which assessment was admittedly provisional we find that there is no tax due from the respondent in the impugned matter. 7. We also note that it is already decided by Karnataka High Court that there is no need to collect any interest in the case of delay in deposit of service tax by Department of Post. Further we find this case to be a fit case for waiving penalty in .....

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