2009 (6) TMI 36 - AT - Service Tax

Interest on belated remittance of service tax - no interest is chargeable on the telephone services for delay in crediting the service tax in Government account as they were Central Government Department at the material time and the service tax was deposited into the consolidated fund of India on day to day basis decision in the matter of G.M.Telecom BSNL Vs. CCE, Chandigarh- 2005 -TMI - 116 - CESTAT, NEW DELHI followed.

Summary

The Appellate Tribunal CESTAT, Chennai ruled that interest is not payable by the appellants for belated remittance of service tax during specific periods. The decision was based on precedents where interest was not charged on delayed tax payments by government departments. The impugned order demanding interest was set aside, and the appeal was allowed.