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of <h1>Transporters liable for interest on service tax from 12-6-2000, Tribunal affirms decision</h1> The Tribunal dismissed the department's appeal, affirming that interest on the service tax amount was payable by the transporters from 12-6-2000 until the ... Service Tax – Being assessee not paid service tax within 30 days from the date on which Finance Act 2000 received President’s assent – Respondent became liable to pay interest Issues:Date from which interest on service tax amount is payable by the respondents.Analysis:The appeal before the Appellate Tribunal CESTAT, New Delhi, involves the issue of determining the date from which the interest on the service tax amount is payable by the respondents. The learned JDR argued that interest became payable by the respondents from the date on which the service tax became payable, citing a retrospective amendment in the service tax provisions. However, the Tribunal disagreed with this contention, citing Section 117 of the Finance Act, 2000, which specifies the conditions under which interest can be claimed. The Tribunal noted that interest could only be claimed if the service tax was not paid within 30 days from the date on which the Finance Act, 2000 received the assent of the President, at a rate of 24% per annum.In this case, the respondents, who are transporters, had their tax liability set aside by the Apex Court in a previous judgment. Subsequently, the relevant clauses were revalidated with retrospective effect, making the service tax payable within 30 days from the date of the President's assent to the amendment in Section 117 of the Finance Act. The President's assent was received on 12-5-2000, and the respondents paid the service tax on 28-9-2000, which was due on or before 11-6-2000. Therefore, the Tribunal held that interest could be claimed from the respondents from 12-6-2000 until the date of payment. The Commissioner (Appeals) had correctly modified the order-in-original to allow interest from 12-6-2000. Consequently, the Tribunal found no illegality in the decision of the Commissioner (Appeals) and upheld the same.Ultimately, the appeal filed by the department was dismissed by the Tribunal, affirming the decision regarding the date from which interest on the service tax amount was payable by the respondents.
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