TMI Blog2023 (7) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... and the appellant has obtained advances for execution of the activity of works contract services and the revenue has not classified the activity undertaken by the appellant under works contract services and no demand is made for works contract services - In that circumstances the advances mobilized by the appellant for execution of the said works contract services is not liable to be taxed. Therefore, it is held that the demand of service tax is not payable by the appellant. Demand of interest has been made against the appellant for delayed payment of service tax - HELD THAT:- As no service tax is payable by the appellant, therefore, the question of payment of interest on delayed payment of service tax does not arise as held by this T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nces from the service recipient for execution of the work. The revenue is of the view that the appellant were liable to pay service tax at the time of receipt of the advances for execution of their work. Therefore, a show cause notice was issued to the appellant to demand service tax on the advances received by the appellant from their service recipient in pursuant to the execution of the contracts along with interest and to propose equivalent amount of penalty. Further, an interest was also proposed for delay in payment of service tax by the appellant. The matter was adjudicated. The demand of service tax was confirmed. Demand of interest was also confirmed. Against the said order, appellant is before us. 3. Shri B.L. Narasimhan, Ld. Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ances for execution of the activity of works contract services and the revenue has not classified the activity undertaken by the appellant under works contract services and no demand is made for works contract services. 8. In that circumstances the advances mobilized by the appellant for execution of the said works contract services is not liable to be taxed. Therefore, we hold that the demand of service tax is not payable by the appellant. 9. Further we find that a demand of interest has been made against the appellant for delayed payment of service tax. As no service tax is payable by the appellant, therefore, the question of payment of interest on delayed payment of service tax does not arise as held by this Tribunal in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... find the case would fall under sub-section (2B) of Section 11A of the Act. Sub-section (2B) of Section 11A of the Act applies in a case where there is voluntary payment of unpaid duty before issuance of show cause notice under sub-section (1) of Section 11A. When the provision refers to show cause notice, it means a show cause notice which could have been validly issued and surely not a notice which had become time-barred. If by efflux of time and in absence of availability of extended period of limitation, such show cause notice itself had become time-barred, any payment made voluntarily by the manufacturer cannot be viewed as one made under sub-section (2B) of Section 11A of the Act. XXXXXXXXXXXXX 13 . Accepting the stand ..... X X X X Extracts X X X X X X X X Extracts X X X X
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