TaxTMI 
TaxTMI 
2019 (5) TMI 665
X X X X Extracts X X X X
X X X X Extracts X X X X
....tax returns but had not discharged the service tax liability during the relevant period. They paid service tax belatedly. Learned Consultant for the appellant submits that the delay was due to their financial difficulties and the entire amount of service tax which was due was paid by them. He also submits that this is not a case that they had suppressed the value of services rendered. In fact, they had declared the entire value of services in their ST-3 returns accurately which itself has been taken as basis by the department in the impugned order and the show cause notice. The relevant period is April 2012 to March 2013. Although the appellant paid the entire amount of service tax they have not paid the interest applicable under Section 75....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r demanding interest under the Finance Act, 1994; it has been decided by the Hon'ble High Court of Delhi in the case of Hindustan Insecticides Ltd., [2013 (297) ELT 332 (Del)] and Kwality Ice Cream [2012 (281) ELT 507 (Del)] that whatever limitation applies to the demand also applies to the interest on it. Therefore, unless provisions of fraud, collusion, wilful mis-statement etc., are invoked, the demand for interest has to be made within the normal period of limitation. It is his further submission that in the present case the element of fraud, collusion, willful mis-statement etc., are absent as has been admitted in the impugned order by the adjudicating authority himself. Therefore, of the total demand of interest covering the period Ap....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... has been short levied or short paid- (a) Where under the rules made under this chapter, a periodical return, showing particulars of service tax paid during the period to which the said return relates, is to be filed by an assessee, the date on which such return is so filed; (b) Where no periodical return as aforesaid is filed, the last date on which such returns is to be filed under the said rules; (c) in any other case, the date on which the service tax is to be paid under this Chapter or the rules made there under. (ii) In a case whether the service tax is provisionally assessed under this Chapter or the rules made there under, the date of adjustment to the service tax after the final assessment thereo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r in the demand of interest and it needs to be upheld. 7. On the question of waiver of penalty under Section 76 and 77 Learned DR submits that there is nothing on record to substantiate any of the claims of the appellant. Regarding financial hardships and accounting problems, etc., there is no case to invoke of provisions of Section 80. Therefore, the appeal may be rejected. 8. I have considered the arguments on both sides and perused the records. On the first question of payment of interest, it is undisputed that the assessee has paid the service tax but not the applicable interest. Therefore, the department has issued the show cause notice to demand interest. There is no time limit in Finance Act 1994 for issuing demand of interest.....