TaxTMI 
TaxTMI 
2010 (1) TMI 362
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....ther Financial Services and Business auxiliary Services falling under Sections 65(12) and 65(19) of Finance Act, 1994 as amended and has been discharging the Service tax liability irregularly. On scrutiny of the Service tax returns filed for the period October, 2005 to March, 2006, it appeared that to the lower authorities that the appellant had not discharged the Service tax liability within the time specified on which the Service tax is payable. It was also noticed by the authorities that the appellant had availed Service tax credit under Cenvat Credit Rules in respect of the Service tax paid on the various services like Banking & other Financial Services and Business Auxiliary Services, authorities found that credit of the Service tax pa....
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....d submit that in the case of interest liability for the month of March, 2006, it is a fact that Service tax liability is discharged belatedly after the due date and he would state that they have already paid interest and are not contesting the same. As regards the interest liability for the period October, 2005 to February, 2006, it is his submission that the appellant had prepared the demand drafts and prepared the TR 6 Challans of the same date i.e. date prior to the date on which Service tax liability is payable. He would submit that once a demand draft is made, the amount is stands deposited in the said account and cannot be held as an amount paid belatedly. He would draw our attention to the TR 6 Challans, and drew our attention to the....
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....djudicating Authority to reconsider the issue afresh. 5. We have considered the submissions made at length by both sides and perused the records. 5.1 As regards the interest liability, we find that the Adjudicating Authority has worked out the interest liability which is reproduced below : Month Date on which S.T. payable Date of payment Amount paid Delay in days Interest due @ 13% (in Rs.) Oct-05 5-11-05 8-11-05 2,20,00,000 3 23,507 Nov-05 5-12-05 7-12-05 2,00,00,000 2 14,247 Dec-05 5-1-06 6-1-06 2,10,00,000 1 7,479 Jan-06 5-2-06 7-2-06 1,60,00,000 2 11,397 Feb-06 5-3-05 7-3-06 2,00,00,000 2 14,247 Mar-06 31-3-06 25-4-....
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.... coming to a conclusion that there is delay in payment of the Service tax liability, as the appellant had every intention to pay the Service tax before the due date which is evident from the date of demand drafts as indicated in TR.6 Challans. We find from the records that the learned Commissioner has admitted that the payments have been made by Demand Draft and said drafts indicate the same date as is on the TR6 Challans. Be that as it may, when the Demand Drafts are of the date which is prior to the due date on which the service tax liability is payable and TR 6 Challan also indicates the same date of the Demand Draft, the question of payment of interest for the period October, 2005 to February, 2006 does not arise. We are convinced that ....