TaxTMI 
TaxTMI 
TaxTMI 
Payment of interest when duty is confirmed by CESTAT
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....ayment of interest when duty is confirmed by CESTAT<br> Query (Issue) Started By: - Prakash Deval Dated:- 14-11-2013 Last Reply Date:- 18-11-2013 Service Tax<br>Got 6 Replies<br>Service Tax<br>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....
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..... 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. Reply By Brijesh Verma: The Reply: Dear Prakash Once the matt....
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....er has been adjudicated by Tribunal, and you feel no need to contest it at higher forum, then interest would be payable. Interest is an automatic consequence under the present scheme of service tax law. You may also note that since the commissioner (A) truncated all demands, hence interest was automatically removed. So now, when demand persists on account of CESTAT order, in my view interest is ....
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....definitely payable. Reply By Prakash Deval: The Reply: Thanx Mr. Brijesh. Reply By Rakesh Chitkara: The Reply: I endorse view of Mr. Brijesh Verma. Interest is not in the nature of penalty. No tax, no interest. If tax is payable, interest is automatic. It is termed as "compensatory payment". Even if the SCN makes no mention of interest, it is till payable. Interest will have to be paid in c....
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....ash. However, you can consider payment of tax through CENVAT, although Department may not be happy with it and will try to push you to pay in cash. Stand firm. As regards case-laws : "compensatory payment" is the key word to search. There are numerous SC judgments on the issue. Reply By Pradeep Khatri: The Reply: Interest in this matter is statutorily required to be paid. There is no waiver on ....
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....the interest if tax is payable. Reply By raj kumar shukla: The Reply: PL inform the date from which interest will be payable.Will it be date of CESTAT order on reduced portion or from the date of OIO on the reduced portion.This assumes significance because comm(A) had set aside the oio. Reply By Rakesh Chitkara: The Reply: Interest is due from the date of non-payment of tax. Please consult you....
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....r SCN for the period the tax has been demanded, as confirmed by the CESTAT. It would probably the 12 months period immediately preceding the issuance of SCN. Order of Commr.(A) does not survive. Date of order of CESTAT or of Adjudication Order are irrelevant. Mind you, there is no interest on interest.<br> Discussion Forum - Knowledge Sharing ....