TaxTMI 
TaxTMI 
TaxTMI 
2006 (4) TMI 247
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....ice to the respondent asking him show cause as to why interest should not be charged for not paying Service tax before the prescribed dates for payment i.e., 15th of the following month, for the months from June to September 1998 in a sum of Rs. 33,752/-. The respondent filed a reply stating that there is no delay in payment of Service tax as it has been credited to the Bank on day-to-day basis. Thereafter, the respondent was called upon to produce the challans submitted to the Bank for the period in question, which was produced by the respondent. On consideration of the aforesaid material, the authority held that the Service tax is not paid on the due dates and it is paid on 31st July, 1998, 31st August, 1998, 29th September, 1998 and 30th....
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....prescribed. If tax is not paid as required under Section 68 of the Act and who fails to credit the tax or any part thereof to the account of the central government within the period prescribed, then such person shall pay simple interest at the rate of 15 per cent per annum for the period by which such crediting of the tax or any part thereof is delayed. 4. The appellant's contention is that the amounts have to be credited on due dates, i.e., 15th of the succeeding month, the amounts are not credited to the account of the central government before that date, theie is a delay of roughly about 15 days in making payment and the interest is charged for the aforesaid delay of 15 days in making such payment. 5. The case of the respondent is that....
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....f the aforesaid provision makes it clear that only when a person who fails to credit the tax or part thereof, to the account of the central government within the period prescribed is liable to pay interest on service tax. The aforesaid provision do not stipulate that such payment should be made to the specific head of account of the central government. If the person liable to pay the Service tax has credited the tax to the account of the central government, even though not to specific head of account of the central government, the liability to pay tax cannot be foisted on him by virtue of Section 75. Regarding 2nd Question : In the light of our conclusion on the first question, now we will proceed to consider the question as to whether th....