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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, MADRAS
SMT. JYOTI BALASUNDARAM, VICE-PRESIDENT
Commissioner of Central Excise, Tirunelveli -Appellant
Versus
Sterlite Industries (I) Ltd. -Respondent
FINAL ORDER NO. 1221 OF 2010 APPEAL NO. ST/433 OF 2010
Decided On : 01-12-2010
T.H. Rao,Ms. Uma Maheshwari
1. I have heard both sides on the appeal of the Revenue against setting aside of the demand of interest by Commissioner (Appeals).
2. As per section 75 of the Finance Act, 1994, every person, liable to pay tax who fails to credit the tax or any part thereof to the account of the Central Government within the prescribed period, shall pay simple interest at a rate not less than 10 per cent and not in excess of 36 per cent p.a. The assessee paid service tax on 5-10-2005 by way of debit in Cenvat credit amount and later on made good the error by making payment in cash. Therefore, Commissioner (Appeals) has correctly held that this is not a case of failure to make payment but only an adoption of an incorrect method for payment, and therefore, the provisions of section 75 are not attracted against the assessees. In the light of the above, I uphold the impugned order setting aside the liability of assessees to pay interest and reject the appeal.
