Appellate decision reduces service provider's interest liability on tax during stay period.

The Appellate CESTAT, Chennai, held that interest is payable by a service provider on tax due during a period when tax provisions were stayed by the High Court. The interest liability was reduced from Rs. 18,29,894 to Rs. 10,41,806 by the Commissioner (Appeals). The remaining interest liability of Rs. 7,88,088 during the stay period was set aside. The Revenue's appeal was allowed, and the impugned order was set aside.

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The Appellate CESTAT, Chennai, in the case of Ms. Jyoti Balasundaram and Mr. P. Karthikeyan, held that interest is payable by a service provider on tax due for the period during which the operation of the tax provisions was stayed by a high court. The decision was based on the Supreme Court's judgment in Calcutta Jute Manufacturing Co. vs. Commercial Tax Officer and the Tribunal's order in the appellant's own case. The interest liability was reduced from Rs. 18,29,894 to Rs. 10,41,806 by the Commissioner (Appeals), and the CESTAT set aside the remaining interest liability of Rs. 7,88,088 during the period covered by the stay order. The appeal by the Revenue was allowed, and the impugned order was set aside. The judgment was dictated and pronounced in open court.

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