2019 (6) TMI 126

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..... hri P. Juneja, Authorised Representative for the respondent ORDER ANIL CHOUDHARY: Heard the parties. 2. The issue in this appeal is, whether for recovery of interest under Section 75 of the Finance Act, 1994, show cause notice could be issued invoking extended period of limitation. 3. The brief facts are that the appellant is registered with the Department and providing services under the cat .....

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..... to March, 2013 invoking extended period of limitation demanding interest under Section 75 of the Act for delay in deposit of service tax. Further, penalty under Section 77 ibid, was also proposed to be imposed for delay in depositing of service tax. The show cause notice was adjudicated on contest and the proposed demand of interest of Rs. 1,46,589/- was confirmed and further, penalty of Rs. 10,0 .....

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..... that the Commissioner (Appeals) has erred firstly relying upon the ruling of this Tribunal, which stands reversed by the subsequent ruling of the Punjab & Haryana High Court. Secondly, the ld. Commissioner (Appeals) has erred holding that non-mentioning of section 73(1) read with proviso, in the show cause notice is only a clerical error and accordingly, the show cause notice is valid. This obser .....

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..... a textile Industries Ltd.-2009 (240)ELT199(Bombay) Ld. Counsel relies on the rulings of the Hon'ble Delhi High Court in the case of Kwality Ice Cream Company -2012 (281) ELT 507 (Delhi), wherein it has been held that for demand of interest, period of limitation prescribed for claim of principal amount should also apply to the claim for interest thereon. As the normal period is one year and in exc .....

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..... y basis. 9. Having considered the rival contentions, I find that the show cause notice is bad, both for invocation of extended period of limitation and also for non-invocation or non-mentioning of proper Section 73(1) with proviso. Accordingly, show cause notice is held to be non-maintainable. The impugned order is set aside and the appeal is allowed. [Order dictated and pronounced in open court .....

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