9911796707
TMI Blog2014 (10) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... espect of deduction made by them and we have also taken note of the consequence of the procedure followed by the appellant, we consider that the appellant should deposit the interest because of the delayed payment of service tax to the extent of R&D cess within eight weeks and report compliance on 11/9/2014. Subject to compliance of above requirement, there shall be waiver of pre-deposit and stay against recovery of balance dues for 180 days from the date of this order - Partial stay granted. - ST/27282/2013-DB - MISC ORDER No.21484/2014 - Dated:- 2-7-2014 - P R Chandrasekharan and Ramesh Nair, JJ. For the Appellant: Mr. N. Anand, Advocate For the Respondent : Mr. A.K. Nigam, A.R. ORDER Per B.S.V.MURTHY Appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an industrial concern R D cess is required to be paid. This cess is to be paid to RBI on or before making any payments towards import of technology. According to exemption Notification No. 17/2004-S.T. dated 10.9.2004, the R D Cess paid can be deducted from the service tax payable. With effect from 10.5.2008, the appellant was required to pay service tax as soon as book entry was made in respect of associated enterprise but R D Cess liability arose only after making payment in foreign exchange, according to learned counsel. Because of this, there was a mismatch between the service tax paid by the appellant after making book entry in respect of service tax since at that time, R D cess has not been paid but was paid subsequently. As a res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not that the appellant had no alternative. R D Cess can be paid even before making the payment for imported technology or knowhow. Nothing prevented the assessee from paying the cess due and claim deduction. 4. In view of the observations above, the procedure followed by the appellant has resulted in short payment of service tax to the extent of R D cess deducted till cess was paid. Therefore, a view can be taken that there was a delayed payment of service tax to the extent of R D cess and the appellants are liable to pay interest. Demanding entire amount of service tax equal to R D cess is not correct. Since we have taken a view that the appellant does not have prim facie case in respect of deduction made by them and we have also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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