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TMI Blog2019 (2) TMI 1492X X X X Extracts X X X X X X X X Extracts X X X X ..... ted, interest cannot be detached from the duty liability. The liability to pay interest arises when the assessee is liable to pay duty on the day which is prescribed but failed to pay the same. The liability to pay interest arises from the date, the duty is payable till the date it is paid. By such late payment or delayed payment, the Revenue is deprived of the duty. The said amount would be in possession of the assessee who would have the benefit of the said amount - It is to compensate the loss sustained by the Revenue, the interest is 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 no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 achieved the target sales and have paid a share of their turnover to the Appellants, this income was not subjected to Service Tax. The said discrepancy came to notice during the course of Audit and after being pointed out by the Audit, the Appellant paid the entire Service Tax amount on 15.09.2011 but without any interest and penalty. Therefore, a Show cause cum demand notice dated 23.07.2012 was issued to the Appellant, as to why:- i) The interest amounting to ₹ 13,73,698/- [Rupees Thirteen Lakhs Seventy th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ismissal 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. It is not disputed that the appellant admitted its liability of Service Tax on the amount over and above the MGM and paid the same before the issuance of show cause notice and due to which the show cause notice was issued for demand of interest only and confirmation of demand and Service Tax and appropriation of the amount paid as Service Tax was not warranted. So far as the liability to pay interest on delayed payment of Service Tax is concerned, I would like to reproduce Rule 6 of Serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 attract payment of interest. I completely agree with the finding of the ld. Commissioner that in view of the law laid down by the Hon'ble Supreme Court in the matter of Union of India vs. Ind-Swift Laboratories Ltd. 2011 (265) E.L.T. 3 (S.C.) the defence put forth by the appellant is not tenable that since they had sufficient balance in their Cenvat account at all time during the period of dispute, no interest is payable. In the aforesaid matter, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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