9911796707
|
Home
Issues involved: Waiver of predeposit, liability to pay service tax amount, contesting interest demand.
The judgment by the Appellate Tribunal CESTAT KOLKATA involved the issue of waiver of predeposit, where the requirement of predeposit was waived, and the appeal was taken up for hearing and disposal with the consent of both sides. The appellants were not contesting the liability to pay the service tax amount but were contesting the interest demand. The Hon'ble High Court of Calcutta did not grant any waiver regarding the payment of service tax and interest. The High Court's order specified that the appellants would be liable to pay interest in accordance with the law for delayed compliance with the statute. The judgment clarified that the payment of interest is a civil liability and not a penalty. In the case, the appellants were not disputing the obligation to pay the service tax amount but were challenging the interest demand. The lower appellate authority noted that the High Court did not grant any waiver concerning the payment of service tax and interest. The High Court's order specified that the appellants must comply with the statute within 60 days to avoid penal action, but they would still be liable to pay interest in accordance with the law. The judgment emphasized that the appeal lacked merit concerning the demand for interest, as it is considered a civil liability. The High Court's order made it clear that the penal action against the appellants was waived on the condition that they complied with the statute within 60 days. However, the order explicitly stated that the appellants would be responsible for paying interest in accordance with the law. The judgment concluded that the appeal had no merit regarding the interest demand, as the payment of interest was deemed a civil liability and not a penalty. Consequently, the appeal was dismissed, and the stay petition was also disposed of.
|
