9911796707
TMI Blog2017 (12) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... riod of 5 years from the date of payment of Service Tax and filing of periodical returns by the appellant. Therefore, as per the principle laid down by the Hon’ble Supreme Court in M/s. T.V.S. Whirpool Ltd. [1999 (10) TMI 701 - SUPREME COURT OF INDIA], such show cause notice issued by the Department, seeking recovery of the interest amount and for imposition of penalty will not stand for judicial scrutiny. Application allowed - decided in favor of applicant. - ST/51183/2017-[SM] - A/58068/2017-SM[BR] - Dated:- 24-11-2017 - Mr. S.K. Mohanty, Member (Judicial) Present for the Appellant: Mr. Vivek K. Pawar, CA Present for the Respondent: Mr. K. Poddar, D.R. ORDER Per: S.K. Mohanty This appeal is direct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed demand confirmed by the authorities below cannot be sustained. To support the stand that show cause notice, seeking recovery of interest amount and for imposition of penalty should be issued within the stipulated time frame and not beyond, the ld. AR has relied on the judgment of Hon ble Delhi High Court in the case of Hindustan Insecticides Ltd. 2013 (297) ELT 332 (Del.), Kwality Ice Cream Co. - 2012 (281) ELT 507 (Del.) and the decision of this Tribunal in the case of Canara Bank 2016 (45) STR 2014 (Tri.-Bang.), Bharat Aluminium Co. Ltd. 2016 (342) ELT 404 (Tri.-Del.), Niranjan Decoflocks Pvt. Ltd. 2015 (337) ELT 351 (Tri.-Del.) and Paper Products Ltd. 2015 (327) ELT 326 (Tri. Mum.). 4. On the other hand, the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing the views of the Tribunal, the Hon ble Supreme Court in the case of M/s. T.V.S. Whirpool 2000 (119) ELT A 177 (S.C.) have ruled that it is only reasonable that the period of limitation that applies to claim for the principle amount should also apply to the claim for interest thereon . Since the law is well settled that the show cause proceedings should be initiated within the period of limitation provided under the statute, which in this case, is Section 73 ibid, the statutory time limit has to be strictly adhered to by the Department for recovery of the interest amount and for imposition of penalty. In this case, admittedly, the show cause notice was issued beyond the period of 5 years from the date of payment of Service Tax an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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