Appellate Tribunal rules interest not subject to service tax tax

The Appellate Tribunal CESTAT NEW DELHI dismissed the Revenue's stay petition, affirming that service tax is not applicable on interest received, but only on amounts for services provided. The appeal to include interest in the assessable value was denied by the Commissioner (Appeals).

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The Appellate Tribunal CESTAT NEW DELHI dismissed the stay petition filed by the Revenue regarding the liability of the respondents to pay service tax on interest received. The Commissioner (Appeals) held that service tax is applicable on the amount received for services provided, not on the interest amount. The appeal to add interest to the assessable value was rejected.

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