2008 (2) TMI 45

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....am Ltd. (BSNL, for short) are a Public Sector Undertaking of the Central Government since 1st October, 2000 and have produced the requisite clearance from the 'Committee on Disputes'. The appeal is against a demand of interest of Rs.1,43,950/- on an amount of service tax belatedly paid by the party on 18-10-2002 for the period from October, 2000 to May, 2002. The interest was demanded under Sectio....

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....ected, the lower authorities ought not to have demanded interest on the differential tax. It is submitted that the appellants had no mens rea in the above matter so as to attract any penal provision. Learned Counsel has reiterated these grounds. It is also submitted that an excess tax payment of Rs. 1,09,759/- made by the appellants is lying with the department and the same is yet to be adjusted a....

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....st. That the appellants had no intention to withhold payment of service tax or that the short-payment was occasioned by arithmetical error is no valid consideration insofar as this provision of law is concerned. The liability under Section 75 is not penal as stated by the appellants. It is a civil liability which is inescapable. The appellants say that certain amount of service tax paid in excess ....