2018 (10) TMI 660

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....rom 01.07.2008 to 31.05.2026 vide lease deed dated 16.06.2008. Consequent to audit of appellant's books of accounts in 2013, show cause notice dated 24.08.2016 was issued proposing to demand interest of Rs. 6,46,150/- for the period 01.06.2008 to 30.09.2011. The original authority confirmed the demand of interest of Rs. 6,46,150/- and appropriated an amount of Rs. 5,638/- which was paid by the appellant assessee. On appeal, the Ld. Commissioner (Appeals) upheld the adjudication order and rejected the appeal. Hence the present appeal before the Tribunal. 2. Ld. Advocate appearing on behalf of the appellant submits that no service tax was paid in view of the legal uncertainty about the taxability of renting of immovable property prevailing....

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.... to section 65(105)(zzzz) in 2010 before the Hon'ble Supreme Court. Accordingly, he submitted that the demand is not sustainable on account of bonafide belief mentioned earlier and the extended period for demand of interest is not applicable. He relied upon various decisions in support of his submissions. 3. Ld. DR appearing on behalf of Revenue submits that the matter has been discussed in detail by both the authorities below and he made the Bench to go through para Nos. 24 & 25 of the Order-in-Original and submitted that Hon'ble Supreme Court had directed to comply with the payment in instalments within six months on or before 01.11.2011 and the appellant have paid the first instalment only on 29.11.2011 and hence they are liable to pa....

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.... There is no evidence on record to show that any such letter was written by the Revenue. 6. As regards question of time bar, I find that the show cause notice in this case was issued on 24.08.2016 demanding interest for the period from 1.6.2008 to 30.09.2011. It is the submission of the Ld. Advocate that show cause notice is time barred and extended period cannot be invoked in this case. However, as the appellants have explained that the entire liability of service tax had been paid, I find that Hon'ble Supreme Court in the case of CC Madras vs. TVS Whirlpool Limited as reported in [2000(119) E.L.T. A177 (S.C)] has held that "it is only reasonable that the period of limitation that applies to a claim for the principal amount should also ....