BSNL LTD. Vs. COMMISSIONER OF CENTRAL EXCISE, BANGALORE

JUDGEMENT

(1.) THE appellant is a PSU, they have obtained clearance from the Committee of Secretaries. They have already pre -deposited Service Tax of Rs. 53,56,506/ - and also they have already deposited Rs. 25,00,000/ - at the time of hearing the appeal by the Commissioner. The learned Counsel submits that they have filed the stay application for wavier of pre -deposit of interest of Rs. 43,47,164/ -. It is submitted by the Counsel that there was no delay in depositing the tax. The amount has been deposited but the transfer to relevant head of accounts to make adjustments was delayed by the Department themselves. Therefore, in such a circumstance, question of paying interest does not arise. The learned Counsel submits that the issue is no longer res integra and the same is covered by this Benchs judgment rendered in the case of Bharat Sanchar Nigam Ltd. reported in 2005 (186) E.L.T. 340. He also refers to Delhi Benchs Order in their own case recorded in 2006 (1) S.T.R. 315 (Tribunal) = 2006 (130) ECR 83. He submits that the appeal would be allowed in terms of these judgments.

(2.) THE learned SDR seeks for a date so that he can get the report on the matter.

(3.) THE question of depositing the interest in the matter does not arise in view of the judgment rendered in the appellants own case. They have already deposited the Service Tax, it is the Department of Telecommunication which had not transferred the amounts. The Tribunal has held that there is no fault on the part of the appellant in delayed transfer of taxes to the Central Government and therefore the question of interest is not required to be charged. In view of this position, the stay application is allowed. The appeal to be taken up for final hearing on 21st February, 2006.