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of <h1>Tribunal directs waiver of interest on service tax, citing Notification 13/2016-ST provisions.</h1> <h3>HARIOM EARTH MOVERS AND TRANSPORT Versus C.C.E., KUTCH (GANDHIDHAM)</h3> The Tribunal allowed the appeal, directing the original adjudicating authority to waive the interest demanded on delayed payment of service tax by Hariom ... Interest on late payment of service tax - rate of Interest and relevant date as per N/N. 13/2016-ST dated 01.03.2016 - benefit of the notification denied - HELD THAT:- In the instant case, the benefit of serial number 2 of the Notification in the cases where the payment was received late, cannot be denied to the appellant. The appeal to that extent is allowed. The original adjudicating authority can waive of the amount and issue the final order - Appeal allowed. Issues:Demand of interest on delayed payment of service tax.Analysis:The appeal was filed against the demand of interest on delayed payment of service tax by Hariom Earth Movers and Transport. The appellant argued that interest was demanded at a rate of 24% for the entire period of late payment, despite the payment being received belatedly in 19 out of 36 invoices issued during April 2016 to June 2017. The appellant contended that Notification 13/2016-ST dated 01.03.2016 allows for different interest rates for the period when payment is received and when it is not received.The Commissioner (Appeals) held that interest is payable at 24% when service tax is not deposited on time after receiving payment from clients. The Commissioner rejected the appellant's argument of bifurcating interest rates based on the timing of payment receipt. However, the Tribunal disagreed with the Commissioner's interpretation, noting that the Notification clearly provides for two different situations with distinct interest rates: 24% for failing to pay collected amounts on time and 15% for other situations. The Tribunal emphasized that the benefit of the Notification cannot be denied to the appellant when payments were received late, allowing the appeal and directing the original adjudicating authority to waive the amount and issue a final order accordingly.
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