UNIKELLER INDIA PVT. LTD. Vs. CCE

JUDGEMENT

(1.) THE issue involved in this case is regarding imposition of interest under Section 75 of the Finance Act, 1994 and imposition of penalty under Section 76 of the Finance Act, 1994.

(2.) THE relevant facts that arise for consideration are that the appellants were recipient of services from goods transport operators and C and F agencies. The appellants were required to pay service tax for the period 16.11.97 to 1.6.98 for the services received by them from these two service providers. The appellants deposited the service tax liable to be paid by them in February, 2004. The Revenue issued show cause notice to the appellants on 8.11.2004 for demand and recovery of interest and imposing penalty. The adjudicating authority ordered to recover the interest and also imposed penalty of equivalent amount. On appeal the Commissioner (Appeals) also concurred the views of the adjudicating authority.

(3.) CONSIDERED the submissions made by both sides at length and perused the record. The challenge of the appellant in this case is regarding recovery of interest period. It is the submission of the appellants that the interest, if at all is to be recovered from them, it has to be recovered from 14.11.2003 till the date of payment of service tax. As regards penalty it is the submission that no penalty is imposable on them since the amount has been already deposited prior to issuance of the show cause notice.