2017 (3) TMI 311

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....) for the Respondent. ORDER The above appeal came up for hearing along with the stay application. The appeal itself was heard and is disposed by this Final Order on consent of both sides. 2. The appellants are undertaking the services of storage and warehousing of bulk liquid cargo and they engaged the services of M/s AVR Storage Tank Terminals Private Ltd., and M/s JRE Tank Terminals Pri....

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....ue to the delay in payment of service tax by the appellant to the Associated Enterprises. The equal amount of penalty was also imposed. The amount of Rs. 16,223/- paid by the appellant towards interest which was the demand for the delay in payment of service tax in regard to the other service provider is having been confirmed was appropriated by the adjudicating authority. The appellant is now bef....

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.... That in the case of Associated Enterprises, the procedure followed by the accounts and finance section of these companies is that the Associated Enterprises immediately pay the tax in the succeeding month without waiting for receipt of payment by the appellant. The appellant has been taking credit on the book adjustment made in this regard, and as per the provision contained in Section 67 (4)(c) ....

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....supra as correctly pointed out by the Counsel for appellant, clarifies the issue. In fact there is no delay of payment of service tax to the Government. The Associated Enterprises has paid the service tax within time without waiting for the payment to be made by the appellant. On such book adjustments the appellant has taken credit and the demand of interest is made on the  pretext that there....