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TMI Blog2021 (5) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... issuance of a writ in the nature of certiorari for quashing/modification of order dated 06.08.2020 (Annexure P-7) passed by Settlement Commission, to the extent of demand of interest in accordance with Notification No.13/2016-ST dated 01.03.2016. The petitioner-Firm is engaged in rendering services of 'supply of manpower'. The respondents initiated an investigation against the petitioner alleging for not disclosing correct value of services rendered by it and collected various documents including balance sheet, Form - 26AS and recorded different statements of proprietor of the petitioner-firm. On the basis of comparison of balance sheets for the years 2011-12 to 2014-15, Form - 26AS with periodical ST-3 returns, respondents found a shortf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iscrepancies in the interest calculation made by respondent No.2. The petitioner pleaded that interest has been charged @ 24% relying upon the aforesaid notification whereas interest should have been calculated @ 15% as the petitioner did not specifically collect the tax from the service recipients. Thereafter, vide order dated 06.08.2020 (Annexure P-7), respondents settled the service tax liability at Rs. 55,70,843/-, rejecting the contentions of petitioner with regard to rate of interest to be charged. Pursuant to notice of motion, reply dated 12.01.2021 has been filed on behalf of respondent No.2 submitting therein that pursuant to order dated 03.10.2019 passed by this Court, the liability was to be calculated within two months of recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has specifically collected service tax and still not deposited with the Government but interest would be charged @ 15% in any other case. The petitioner, in the invoices issued during the period in question, did not collect any amount specifically mentioning it as service tax. The respondents have calculated the interest liability by dividing the total tax liability for a particular financial year equally between four quarters which is not justified and against the provisions of law. The interest should be calculated as per the actual service tax liability for a particular quarter. Per contra, learned counsel for respondent No.2, on the basis of reply, has contended that no fault can be found with impugned order which has been passed in co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n controversy, the table fixing the rate of simple interest as per Notification dated 01.03.2016 needs to be gone into, which reads as under:- Sr.No. Situation Rate of simple interest 1 Collection of any amount as service tax but failing to pay the amount so collected to the credit of the Central Government on or before the date on which such payment becomes due. 24 per cent 2 Other than in situations covered under serial number 1 above. 15 per cent It is clear from the above reproduction that the notification fixed the rate of simple interest @ 24% in case where any amount is specifically collected as service tax and still not deposited with the Central Government on or before the date on which such payment became due whereas r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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