THE CHIEF ACCOUNTS OFFICER Vs. CCE

JUDGEMENT

(1.) The issue in dispute is as to whether interest is payable by the appellants herein, for belated remittance of service tax during the period October' 98 to March' 99 and April' 99 to September' 99 .

(2.) We have heard both sides. We find that in the case of G.M. Telecom BSNL v/s. CCE, Chandigarh reported in, 2003 (57) RLT 748 (CEGAT -Del.), the Tribunal has held that no interest is chargeable on the telephone services for delay in crediting the service tax in Government account as they were Central Government Department at the material time and the service tax was deposited into the consolidated fund of India on day to day basis. The ratio of the above decision was followed in the case of Chennai Telephones (BSNL) v/s. CCE, Chennai, Final Order No. 945/03 dated 1510.03. Following the ratio of the above orders, we set aside the impugned order demanding interest from the appellants and allow the appeal.