Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2014 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (8) TMI 456 - AT - Service TaxConsulting engineer service - Service tax rate - chargeable @ 5% or @8% - services provided prior to 14.05.2003 in respect of which payments were received on or after 14.05.2003 - Held that:- The appellate Commissioner considered copies of the relevant invoices, payment advices and copies of cheques evidencing receipt of payments by the assessee and concluded that the assessee had provided month wise and return wise details of invoices disclosing that rendition of the taxable service was prior to 13.5.2003 i.e. prior to the date the rate of service tax was increased from 5% to 8%; and therefore liability to service tax was at 5% and not 8%. Neither the CBEC letter nor Rule 5B of Service Tax Rules, 1994 authorise levy of service tax, at a rate not in force on the date of rendition of the taxable service, which is the taxable event. However, the Review Commissioners appear to have fundamentally misguided themselves as to what is clearly a basic principle, that only the rate of tax prevailing at the time of rendition of the taxable service could be levied and collected - Following decision of CST Vs. Consulting Engineering Services (I) Pvt. Ltd. - [2013 (1) TMI 434 - DELHI HIGH COURT] - Decided against Revenue.
|