2017 (4) TMI 225

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....s payable under section 66A of Finance Act, 1994. 2. Appellant is a manufacturer registered under Finance Act, 1994 for discharge of service tax on 'reverse charge basis' as per appropriate provisions. Taking notice of alleged delayed payment of tax on 'goods transport agency service', 'consulting engineer service' and 'intellectual property service' during audit of the period 2008-09 interest of Rs. 738, Rs. 246 and Rs. 2,65,866/- was ascertained as due. 3. In view of their reluctance to make the payment, notice was issued and the assessee agreed to discharge interest liability on the tax paid under the first two categories but assailed the interest liability on 'intellectual property services' which was asser....

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....Consequently, section 76 of Finance Act, 1994 (as amended) was invoked for imposing penalty in view of section 78B incorporated with effect from 14^th May 2015. 6. It is an admitted fact that tax dues have been paid as on date of notice and the proceedings were for the limited purpose of recovery of interest that assessee may unwilling to pay. It is moot whether a notice under section 73(1) of Finance Act, can demand interest or, for that matter, whether a penalty can be imposed for non-payment of interest. Doubtlessly, the immunity from penalty is accorded by Explanation 2 in section 73(3) of Finance Act, 1994 but even that specific prescription for immunity was not applicable to the period of dispute. Interest is governed by section 75....