Payment of interest when duty is confirmed by CESTAT

[Guest]

In my case SCN was given by Dept which was contested by me and Commissioner (A) held that service tax was paid correctly and no more duty can be demanded. Commissioner (A) also set aside Penalty and Interest.  Dept went in appeal and CESTAT has set aside the duty demand beyond normal limitation and allowed demand only during normal limitation. Penalty is set aside but no order on Interest. Am I liable to pay any Interest on duty confirmed by CESTAT? Please provide solution with supporting case laws if possible. Thanking in anticipation.  

AI Summary

Interest Automatically Payable on Confirmed Service Tax Duty by CESTAT; Consult SCN for Specific Period Details A forum discussion addresses whether interest is payable on a service tax duty confirmed by CESTAT after an appeal. The initial query describes a case where the Commissioner (A) set aside penalty and interest, but CESTAT confirmed the duty within the normal limitation period without addressing interest. Respondents agree that interest is automatically payable when tax is due, as it is considered compensatory, not penal. They advise that interest is due from the date of non-payment, regardless of CESTAT or Adjudication Order dates, and suggest consulting the SCN for the specific period. Payment of interest should be made in cash.