2019 (1) TMI 320

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.... for the period w.e.f. April 2008 to September 2012. However, no interest was paid on the said delayed payment. Accordingly, a Show Cause Notice No. 10060 dated 01.08.2014 was served upon the appellants proposing the recovery for Rs. 2,87,881/- as an interest to be paid on delayed payment of service tax. In view of Section 75 of the Finance Act, the said proposal was initially confirmed by the Order of Assistant Commissioner No. 498 dated 27.01.2016. Being aggrieved, an appeal before the Commissioner (Appeals) was filed who vide the Order under challenge has upheld the findings. 2. I have heard Mr. Chirag Jain, Ld. CA for the appellant and Mr. P.R. Gupta, Ld. DR for the Department. 3. It is submitted by the appellant that out of the e....

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....how Cause notice is alleged by barred by time. Ld. Counsel has relied upon the decision of inclusion of Quality Ice Cream Co. Vs. Union of India 2012(27) S.T.R. 8(Delhi) submitting that where the period of limitation prescribed for claim of principal amount has expired, the time barred demand cannot apply to the claim even for interest therein. It is mentioned that the Adjudicating Authority below has ignored the said decision. The Order is prayed to be set aside and Appeal is prayed to be allowed. 4. Per contra, while rebutting these arguments, Ld. DR has justified the impugned order. Para 5.7 thereof is impressed upon submitting that as per Section 75 it is mandatory for the assessee/ appellant to pay interest in case the service tax h....

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....2), which provides that "Notwithstanding anything contained in the provisions of section 76 or Section 77 or Section 78, no penalty shall be imposable for failure to pay service tax payable, as on the 6th day of March, 2012, on the taxable service - referred to in sub-clause (zzzz) of clause (105) of Section 65, subject to the condition that the amount of service tax along with interest is paid in full within a period of six months from the date on which the Finance Bill, 2012." Perusal thereof makes it clear that once the payment has been made before the issuance of Show Cause Notice no question of any penalty nor of interest at all arises. The payment in the present case was made after the said amendment but before the issuance of Show....