Appellate Tribunal rules in favor of assessee, denies interest demand under Finance Act.

The Appellate Tribunal CESTAT, Chennai upheld the decision setting aside the interest demand by the Commissioner (Appeals). The Tribunal determined that the assessee's situation did not trigger liability under Section 75 of the Finance Act, 1994, as it was deemed an incorrect payment method rather than a failure to pay. Consequently, the obligation to pay interest was denied, and the Revenue's appeal was rejected.

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The Appellate Tribunal CESTAT, Chennai upheld the order setting aside the demand of interest by the Commissioner (Appeals). The Tribunal ruled that the assessee's case did not fall under Section 75 of the Finance Act, 1994, as it was not a failure to make payment but an incorrect method of payment. Therefore, the liability to pay interest was rejected, and the appeal by the Revenue was dismissed.

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