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TMI Blog2022 (6) TMI 1084X X X X Extracts X X X X X X X X Extracts X X X X ..... LORE [ 2011 (4) TMI 969 - KARNATAKA HIGH COURT] has held that Without the liability to pay duty, the liability to pay interest would not arise. The liability to pay interest would arise only when the duty is not paid on the due date. If duty is not payable, the liability to pay interest would not arise. Penalty - HELD THAT:- The liability for interest does not merit approval and, consequently, the penalty too is unwarranted. Appeal allowed - decided in favor of appellant. - SERVICE TAX APPEAL NO. 86306 OF 2015 - A/85584/2022 - Dated:- 7-6-2022 - MR C J MATHEW, MEMBER (TECHNICAL) AND MR. AJAY SHARMA, MEMBER (JUDICIAL) Ms Radhika Chandrasekhar, Advocate for the appellant Shri Nitin M Tagade, Joint Commissioner (AR) for the respondent ORDER In this appeal, arising from the order in-original no. 04/STCIV/SKS/14-15 dated 25th March 2015 of Commissioner of Service Tax-IV, Mumbai impugned before us by M/s Aban Offshore Limited, are two issues. The first pertains to taxability of Rs. 60,57,49,157/- for drilling for oil exploration in offshore locations between July 2009 and February 2010 in the demand of Rs. 60,57,49,157/- confirmed under section 73 of Fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 35. In the present case, we find that the plain reading of the 2009 Notification would give a clear meaning and it cannot be said to be obscure. The words are clear and plain capable of giving only one meaning that the provisions of Chapter V of the Finance Act are extended to the installations, structures and vessels in the Continental Shelf and Exclusive Economic Zone of India. We find that the words used in the said notification are not capable of giving two meanings. As already discussed hereinabove, prior to 2002, the areas in the Continental Shelf and Exclusive Economic Zone of India were not brought under the purview of Service Tax net. Only by the Notification of 2002, the said provisions were made applicable to the areas in the Continental Shelf and Exclusive Economic Zone of India, only insofar as the areas which were covered under the 1986 and 1996 notifications. By amendment to 2002 Notification by the 2009 Notification, the services rendered to installations, structures and vessels were brought in the Service Tax net irrespective of the fact that as to whether the said installations, structures and vessels were situated in the areas covered under the 1986 and 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove, it cannot be said that the meaning as gathered from the plain reading of the words in 2009 Notification or 2010 Notification can be said to be leading to obscure or anomalous situation. In that view of the matter, we find that the contention in that regard also deserves to be rejected. 42. In view of settled legal position, we find that the 2010 Notification cannot be said to be clarificatory in nature, but it brings about substantive change in law. Whereas the 2002 Notification as amended by 2009 Notification is applicable only to the services rendered to installations, structures and vessels, the 2010 Notification widens the tax scope and amongst various other services also brings into the Service Tax net the services rendered to or by the installations, structures and vessels. It can thus be seen that the present transaction, which is in the nature of providing services by the vessels of the appellant for the purpose of prospecting mineral oil and as such is a service consumed by the seabed of Continental Shelf of India would come in the tax net only after 2010 Notification came into effect. We are of the considered view that the said service cannot be said to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to pay interest. Section do not stipulate interest is payable from the date of book entry, showing entitlement of Cenvat credit. Interest cannot be claimed from the date of wrong availment of CENVAT credit and that the interest would be payable from the date CENVAT credit is taken or utilized wrongly. 22. In the instant case, the facts are not in dispute. The assessee had availed wrongly the Cenvat credit on capital goods. Before the credit was taken or utilized, the mistake was brought to its notice. The assessee accepted the mistake and immediately reversed the entry. Thus the assessee did not take the benefit of the wrong entry in the account books. As he had taken credit in a sum of Rs. 11,691-00, a sum of Rs. 154- 00 was the interest payable from the date the duty was payable, which they promptly paid. The claim of the Revenue was, though the assessee has not taken or utilized this Cenvat credit, because they admitted the mistake, the assessee is liable to pay interest from the date the entry was made in the register showing the availment of credit. According to the Revenue, once tax is paid on input or input service or service rendered and a corresponding entry is made ..... X X X X Extracts X X X X X X X X Extracts X X X X
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