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TMI Blog2019 (3) TMI 1226X X X X Extracts X X X X X X X X Extracts X X X X ..... l, who have assisted this Court on the legal issue raised in this appeal. 2. The assessee has filed this appeal under Section 35G(1) of the Central Excise Act, 1944 (for short, the Act) challenging Final Order No. 43443/2017 dated 27.12.2017 on the file of the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench, Chennai (for brevity, the Tribunal). 3. The appeal has been filed by raising the following substantial questions of law : "i. Whether the Tribunal was correct in refusing to consider the plea of the appellant resisting the demand of interest for the extended period of time for the reason, merely on the ground that the appellant had earlier admitted and paid the tax along with interest for the normal period and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he invoice raised basis and not on the receipt basis. 8. This explanation did not find favour with the Revenue, resulting in issuance of a show cause notice dated 29.5.2008, in which, the Revenue noted that the service tax to the tune of Rs. 3,14,344/- pertaining to the three years under consideration had been paid by the assessee on 08.2.2008. However, the interest had not been paid on such delayed payment and the total interest was worked out to Rs. 3,24,685/-. The assessee paid the interest to the tune of Rs. 47,814/- for the period from October 2002 to 08.2.2008. 9. The assessee appeared to have stated that the claim for interest for more than five years was hit by limitation. 10. However, it was stated in the said show cause notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istration certificate was granted to the assessee by the Department itself to one of business auxiliary services and that the Adjudicating Authority ought to have held that when no tax was liable to be paid for the disputed period, the question of demanding interest did not arise. The assessee set out the factual position and also reiterated that the Adjudicating Authority ought to have taken note of the amendments issued to the registration certificate revising the taxable service provided by them from the advertising agency to business auxiliary service. Further, the question of limitation was also canvassed before the CCE(A) and the penalty imposed was stated to be unjustified and contrary to the provisions of the Act. 13. The CCE(A), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was made, the assessee remitted partial payment of Rs. 47,814/- and that was for the period from October 2002 to 08.2.2008. In the said show cause notice, there was a demand for differential interest to the tune of Rs. 2,76,871/-. After receipt of the said show cause notice, the assessee claimed that the demand was hit by limitation. Nevertheless, under protest, interest was paid and the matter was contested before the Adjudicating Authority, who rejected the assessee's claim and confirmed the demand in the said show cause notice dated 29.5.2008. 18. Before the CCE(A), the assessee questioned the ambit of taxable service of advertising agency and more particularly, in the light of the clarification issued by the Government of India da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce, we are of the considered view that the matter should be considered by the CCE(A) as regards the contentions raised by the assessee in respect of taxability of the services. If the CCE(A) comes to the conclusion that the services during the relevant period were not taxable, then the assessee is entitled to a partial relief from the demand of differential interest, which was remitted by them under protest on 06.10.2008/07.10.2008. 22. For all the above reasons, the above civil miscellaneous appeal is allowed, the order passed by the Tribunal is set aside and the matter is remanded to the CCE(A) to consider the issue regarding taxability of service for the relevant period. In the event the CCE(A) is convinced that the services are not tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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