Service tax on interest

hey act has provided a provision where institution can levy tax on penalties and interest if applicable.

you can check particular site for further information

hope it helps

https://www.servicetax.gov.in/st-profiles/paymntcards-services.htm

Ok.. I checked it. Also refer valuation rules. but still I am not in that favour.. You can also check Telephone bills, where they charge Rs 10 - 40 depending upon bill amount, i.e. penalty, but NO Service Tax on that amount.. So I can say no service tax is leviable on penalties..

and Interest on late payment is also of penalty nature.. So no interest should be charged on it.

Thats my view., I am looking for any judgement in favour or opposit.