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TMI Blog2017 (3) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... amount to the Associated Enterprises - Held that: - When the service tax has been paid by the Associated Enterprises within time the demand of interest cannot sustain, in terms of provisions laid in Section 67(4)(c) - appeal allowed - decided in favor of appellant. - ST/22069/2014 - A/30106/2017 - Dated:- 30-1-2017 - Ms. Sulekha Beevi, C.S., Member (Judicial) Sh. V. Ravindranath, Advocate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he original authority dropped demand of ₹ 72, 12,604/- holding that the appellants are eligible to take CENVAT Credit on the book adjustments made by them in regard to the payments made to Associated Enterprises as well as other service providers. However, the original authority observed that there was delay in payment of service tax on behalf of Associated Enterprises to the Government an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s discharged the service tax liability within the prescribed time without waiting for payment of consideration and service tax by the appellant. That therefore, there is no delay in paying the service tax to the Government. Though Associated Enterprises discharged the service tax liability within the prescribed time, the department has proceeded to demand interest from appellant for the reason tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the appellant to the Associated Enterprises. Therefore the interest demand is correct and proper. 5. I have heard the submissions made before me. On perusal of records it is seen that the appellant has taken credit of the service tax paid by making book adjustment in regard to the service provided by the Associated Enterprises. Section 67(4)(c) provides for such book adjustments in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... side the impugned order to the extent of the demand of ₹ 5,28,510/- and the penalty thereon. However, I do not disturb the confirmation of interest of ₹ 16,223/- already paid by the appellant in regard to the delay in payment of service tax to other service providers. The appeal is allowed with consequential reliefs, if any. Stay application disposed accordingly. (Order dictated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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