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2018 (4) TMI 1109 - HC - Service TaxPayment of interest in installments - extension sought on the ground that there is a deficit in working capital due to additional investment in the new project - Held that - the petitioner has not challenged the order passed by the first respondent on merits. They are ready and willing to comply with the direction of payment of interest liability. They seek four months time to pay the balance of interest liability - taking note of the fact that the additional amount of service tax as settled by the first respondent to the tune of ₹ 63,13,770/- and penalty to the tune of ₹ 1.80 lakhs have already been paid, this Court is inclined to grant time to the petitioner to settle the balance of interest liability - petition allowed.
Issues:
Challenge to order under Central Excise Act regarding interest liability settlement in instalments. Analysis: The petitioner challenged an order under the Central Excise Act, 1944, regarding the settlement of interest liability in instalments. The first respondent directed the payment of additional service tax, interest liability, and imposed a penalty. The petitioner had paid a portion of the interest liability but still had a balance to clear. The petitioner requested to pay the remaining interest liability in instalments due to financial constraints caused by duty arrears payment, deficit in working capital, additional investment, and cash loss from operations. The petitioner sought four months to settle the balance. The court noted that the petitioner did not dispute the order on merits and was willing to comply with the payment of interest liability. Considering the petitioner's approach to settle the case, the court granted four months to pay the balance of interest liability. The court directed the petitioner to commence payment within one week and complete the payments within four months. The court disposed of the writ petition without costs. In conclusion, the court allowed the petitioner's request for an extension to pay the balance of interest liability in instalments, considering the financial constraints and the petitioner's willingness to comply with the payment direction.
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