9911796707
TMI Blog2019 (2) TMI 1492X X X X Extracts X X X X X X X X Extracts X X X X ..... by using the infrastructure of the mall/outlets. For using this facility, the retailors/persons had entered into Minimum Guarantee agreement with the Appellant, according to which they have to pay a fixed percentage of sales or a Minimum Guarantee Money (MGM) to the appellant. They had to ensure that the minimum amount of income is generated so that appellant gets a sufficient share. In case the minimum income was not generated, the person using the space had to pay the differential amount as MGM. In respect of the MGM charged and received by the Appellant they had paid Service Tax under "Business Auxiliary Service". However, for the amount received by the Appellant during the year 2007-08, over and above MGM, from the persons who had achi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the show cause notice and there cannot be interest demand without any demand raised for the tax amount. He also submitted that the appellant always had unutilized balance lying in the CENVAT credit account and they have immediately reversed the credit on being pointed out by the Department and, therefore no interest is to be imposed on the appellant. Learned Authorised Representative appearing on behalf of revenue reiterated the findings regarding in the impugned order and prayed for dismissal of appeal. He strenuously contended that once the Appellant had admitted his liability and paid the entire Service Tax liability, although before the issuance of show cause notice, still they are liable to pay interest for the delayed period. 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; or (d) an amount under sub-rule (2) of rule 16 of Central Excise Rules, 2002; or (e) service tax on any output service: Provided that while paying duty of excise or service tax, as the case may be, the CENVAT credit shall be utilized only to the extent such credit is available on the last day of the month or quarter, as the case may be, for payment of duty or tax relating to that month or the quarter, as the case may be: As per the provisions of Rule 3(4) of Cenvat Credit Rules, 2004 the assessee is required to pay Service Tax from the Cenvat account only to the extent which is available in the Cenvat account on the last day of the period for which Service Tax is due. Any delayed payment of Service Tax as aforesaid will certainly attr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imposed and, therefore, the interest is payable for the period during which the Revenue is deprived of the duty, which it was legitimately entitle to and since the assessee had the benefit of the duty by not paying the duty payable on the due late. It is compensatory in nature and is imposed on the assessee who has withheld payment of any tax as and when it is due and payable. Thus the show cause notice and the orders of the authorities below invoking the provision of Section 75 ibid for demanding interest is perfectly in order and is within the framework of law. 7. In view of the discussions made hereinabove I do not find any merit in the appeal filed by the appellant and the same is hereby rejected. (Pronounced in Court on 13/02/2019) X X X X Extracts X X X X X X X X Extracts X X X X
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