2018 (10) TMI 661

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.... not paid service tax on advances received from their customers. The appellant had subsequently discharged the service tax liability on the advances received by them in two instalments. It appeared that there was a delay in paying service tax. Accordingly, the Original Authority after issue of notice and following due process of law, confirmed the demand of interest amounting to Rs. 7,22,775/- on service tax on advances received by them and also imposed a penalty under Section 77 of the Act, 1994. Aggrieved, the appellant approached the First Appellate Authority who, upheld the Order-in- Original and dismissed the appeal. Hence this appeal. 2. Learned Counsel for the appellant took the bench through the facts of the case and said that th....

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....the recovery of the interest whether interest payable has been paid or part paid or erroneously refunded". There is no corresponding provision in the service tax Act regarding recovery of interest. He, however, relied on the following case laws to buttress his case that the demand is hit by limitation of time. i) Commissioner Vs. T.V.S. Whirpool Ltd., [2000 (119) ELT A177] in which, Hon'ble Supreme Court held that the period of limitation that applies to a claim for the principal amount should also apply to the claim for interest thereon under the Customs Act. ii) Canara Bank Vs. Commissioner of Central Excise & Customs, LTU, Bangalore [2016 (45) STR 214 (Tri.-Bang.)] in which, it was held that the period of limitation app....