ORDER
Moheb Ali M., Member (T)
1. The issue relates to Service Tax payable by a person who has engaged the services of goods transport operator during the period 1997-98.
2. After hearing both sides for some time, it is observed that the matter is in a narrow compass and can be decided at this stage. The plea before me is for waiver of pre-deposit of interest demanded by the adjudicating authority on the service tax not paid during the period 1997-98. This application is for waiver is filed under Section 35F of the Central Excise Act. It is observed that the Section does not require a person to seek waiver of pre-deposit of interest nor has the appellate authority got the powers to stay recovery of interest. In a way, this application for waiver of pre-deposit of interest is infructuous. I consider the application for waiver as an appeal itself and deal with it accordingly.
3. The original authority demanded interest on the service tax not paid during the year 1997-98 and also imposed a penalty of Rs.1000/- under Section 77 on the appellant on the ground that they failed to pay service tax in time and have also failed to file return in time. In appeal, the Commissioner (Appeals) did not deal with the issue of demand of interest but confined himself to imposition of penalty under Section 77. It is argued before me that Commissioner (Appeals) has not dealt with the appellants plea before him that no interest is payable on service tax not paid during those years as the service receiver was not required to file a return even after amendment to the provisions of Finance Act, 2000. The Commissioner (Appeals) ought to have dealt with the issue of demand for interest. He failed to do so.
4. I, therefore, set aside the impugned order and remand the matter to the Commissioner (Appeals) with directions to deal with the issue of demand for interest on the tax not paid during the year 1997-98, after giving an opportunity to the appellants of being heard.