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TMI Blog2009 (7) TMI 451X X X X Extracts X X X X X X X X Extracts X X X X ..... evade payment of duty by the respondents in each of the orders, failure to pay tax due on time has to be held to have occasioned by the ignorance of the statutory requirements on the part of the respondents. In the circum stances, I hold that sufficient cause existed in these cases which prevented the respondents from discharging the tax liability in time and that they are entitled to the relief of waiver of penalty under Section 80 of the Act. – However, the respondents are liable to pay interest for the delay in payment of service tax - ST/263 and 298/2007 - 1079-1080/2009 - Dated:- 31-7-2009 - Shri P. Karthikeyan, Member (T) S/Shri V. Raja Ram and M. Ravi Rajendran, DRs, for the Appellant. S/Shri Arun and Nagraj, Advocate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lties imposed on the respondents. Appeals seek to restore the demand of interest and the penalties imposed on the respondents. 3. In the grounds of appeal it is submitted that the Commissioner (Appeals) had vacated the demand of interest and penalties relying on judicial authorities which had held that the demand of interest and penalty were not sustainable, when the assessee had discharged the duty liability along with appropriate interest before issue of show cause notice. The appellant relies on various case law in which it was held that where assessee paid excise duty evaded along with interest before issue of show cause notice, after it was booked by the revenue for the offence, did not absolve the assessee of its liability to intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s extent in both the cases. 6. As regards liability to interest already paid by the respondents, I find that the relevant Section 75 of the Act reads as follows: 75. Interest on delayed payment of service tax. - Every person responsible for collecting service tax and paying it to the credit of the Central Government in accordance with the provisions of Section 68, who fails to credit the tax or any part thereof to the account of the Central Government within the period specified in that section, shall pay simple interest at the rate of one and one-half per cent for every month or part of a month by which such crediting of the tax or any part thereof is delayed. 6.1 In accordance with this provision, the respondents are liable to pay i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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