2026 (3) TMI 1766

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.... 1994. 2. The appellant is engaged in providing Cleaning and Manpower Services. On certain occasions, due to slow down in the industry and delayed receipt of payments from clients, they discharged the service tax liability belatedly. Purportedly the fact of delayed payment came to the notice of the department during audit, though periodically filing of ST-3 returns has not been disputed. As per department, although the appellant admitted its liability to pay interest and sought time for payment, it failed to discharge the same. Consequently a show cause-cum-demand notice dated 24.6.2020 was issued, demanding interest u/s. 75 ibid for the periods 2014-15 till 30.6.2017, amounting to Rs.4,79,974/-. 3. The issue for consideration is whet....

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....nt should also apply to the claim for interest thereon'. The Tribunal's order impugned in that case [Collector of Customs vs. TVS Whirlpool Ltd.; 1996 (86) E.L.T. 144 (Tribunal)], dealt with an issue related to payment of interest under the Customs Act, 1962 wherein a similar provision of limitation exists in case of non-levy, short levy, etc. and held that recovery proceedings for interest must adhere to the same limitation as applicable to the principal duty. 6. Further, the Hon'ble Delhi High Court in Kwality Ice Cream Company vs. Union of India; 2012(281) ELT 507 (Del.) following the law laid down by the Hon'ble Supreme Court in TVS Whirlpool Ltd. (supra) allowed the writ petition filed by the assessee on the ground of limitation its....