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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, MADRAS
MS. JYOTI BALASUNDARAM, Dr. Chittaranjan Satapathy, JJ.
Sify Technologies Ltd. -Appellant
Versus
LTU, Chennai -Respondent
STAY ORDER NO. 571 OF 2011 APPLICATION NO. ST/STAY/378 OF 2010 APPEAL NO. ST/655 OF 2010
Decided On : 27-06-2011
G. Natarajan,Pramod Kumar
Jyoti Balasundaram, Vice-President - We have heard both sides on the application for waiver of pre-deposit of interest of Rs. 48,45,262/- together with penalty of Rs. 89,38,425/-, covering the period October, 2006 to December, 2007. The demand of interest is on the ground that the assessees delayed in paying the service tax on transactions between associated enterprises.
2. The contention of the assessees is that there has been no delay on their part as the amendment to Section 67 by which service tax liability was to be discharged in the case of transactions with associated enterprises immediately on entry in the books of accounts is only prospective i.e. w.e.f. 10-5-2008, which is that date of amendment to the statutory provision and not retrospectives and therefore, the payment made upon realization was in time not delay. Prima facie, we find this contention is supported by the Tribunal’s Final Order No. 1162/10 dated 8-11-2010 [2011 (21)
