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TMI Blog2015 (10) TMI 2464X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of Financial Institutions etc in Gujrat state. They obtained service tax registration and paid service tax under the head of Banking and Other Financial Services. The DGCEI after collecting the details of MICR-CPCs operated by various banks from Reserve Bank of India, followed up with the appellant for the details of the amounts collected by them when they conducted the business of cheque processing. After recording various statements, the authorities came to a conclusion that appellant is liable to discharge service tax liability on the amounts collected by them on MICR cheque processing charges during the period 16.07.2001 to 28.02.2005; during the pendency of the proceedings appellant discharged the service tax liability "under protes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after due deliberation it was clarified that the activities under taken and the charges collected by the appellant from members bank was squarely covered under Banking and Other Financial Services. He would submit that there was no intention to evade the service tax and hence the interest, as has been charged by the adjudicating authority needs to be set aside, he relies on the judgment of Hon'ble High Court of Gujarat in the case of C.C.E. & C., Vadodara-II Versus Gujarat Narmada Fertilizers Co. Ltd. 2012 (285) E.L.T. 336 (Guj.) as it is directly in the point. He would also draw our attention to paragraph number 39 of Order-In-Original to press home the proposition that there was a bona-fide conduct and no intention to evade any tax; a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her Financial Services. To that extent the appellant's appeal fails on merits. On limitation also we find that the appellant could have contested the matter. 9. As regards the interest, we find that the claim of the department that once payment of tax is made, interest liability would arise, is legally contrary to the views as has been laid down by the Hon'ble High Court of Gujarat in the case of Gujarat Narmada Fertilizers Co. Lttd. (supra). In that case, though the period of limitation had expired, the assessee therein has discharged the duty liability, but did not discharge the interest. Revenue proceeded against the assessee therein for the recovery of interest claiming that having discharged duty, interest liability arises. Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich had become time barred. If by efflux of time and in absence of availability of extended period of limitation, such show cause notice itself had become time barred, any payment made voluntarily by the manufacturer cannot be viewed as one made under sub-Section (2B) of Section 11A of the Act. 12. In the present case, we have already held that time for issuing such a notice was one year, which period had already expired. 13. Accepting the stand of the Department that even in such a case once the payment of duty is made, interest liability would follow would bring about an incongruent situation. The recovery of the unpaid or short paid duty would become time barred. If the manufacturer does not pay it voluntarily, it would not be possib ..... X X X X Extracts X X X X X X X X Extracts X X X X
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