2015 (1) TMI 41

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....sessee was making cash payment of service tax on monthly basis, but that part of service tax, which was required to be monthly paid by debiting CENVAT credit account, was paid quarterly basis. Thereafter, the details in this regard from July 2010 to March 2012 were called from the appellant. The appellant submitted the details vide letter dated 06.03.2013 wherein also the assessee paid service tax though CENVAT credit on quarterly basis. Thus, payment of service tax made quarterly through their CENVAT credit account was delayed for which the assessee was asked to pay interest on service tax u/s 75 of the Finance Act, 1994. The appellant had not paid interest on the above delayed payment of service tax paid through CENVAT credit account on q....

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....an Insecticides Limited vs. CCE LTU - [2013 (297) ELT 332 (Del.)]        (b) Kwality Ice Cream Company vs. UOI - [2012 (281) ELT 507 (Del.)]       (c) Collector of Customs, Madras vs. T.V.S. Whirlpool Limited - [1996 (86) ELT 144 (Tribunal)] 4. Learned AR Shri Jitendra Nair appearing on behalf of the Revenue argued that if duty payable in a month is not debited in the CENVAT account then it will be treated as delayed payment and interest liability is attracted. That there is no time limit for demanding interest under Section 75 of the Finance Act, 1994 and that demand has been correctly confirmed by the adjudicating authority. 5. Heard both sides and perused the case records....

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....in the CENVAT Credit account and it has not been reflected in the ST-3 return. In view of the fact that even in the cases of clandestine removal in Central Excise matters, while confirming the demand, the benefit of CENVAT Credit, subject to verification of records that proper documents are available and raw input/capital goods have been received, the benefit of CENVAT Credit is allowed. This being a technical ground that the appellant did not make debit of the CENVAT Credit and did not make proper entries in the ST-3 return, confirmation of service tax demand is not justifiable. Therefore, the matter is required to be remanded to original adjudicating authority, who shall verify the CENVAT Credit account of the appellant and if sufficient ....