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2015 (1) TMI 727 - AT - Service TaxDenial of an exemption - Availment of 67% abatement under Notification No. 15/2004-ST dated 10.09.2004 and Notification No.1/2006-ST dated 01.03.2006 - Demand of interest - Receipt of advance - Held that:- during the relevant period the rate to tax applicable was rate of tax prevailing on the date of providing the service. Therefore, before the service was provided the appellants would have been in no position to know as to at what rate to pay the service tax. The service tax was paid as and when the service relating to advance received was rendered. In this view of the matter, it is not possible to sustain the order relating to recovery of impugned interest. It was only on 18.05.2012 that Section 67A was introduced which provided that the rate of service tax, value of taxable service and the rate of exchange, if any shall be the rate of service tax or value of taxable service or rate of exchange in force as applicable at the time when the taxable service has been provided or agreed to be provided. Obviously, Section 67A would only have prospective applicability. Thus, to reiterate, as the advance received by the appellants has been adjusted in due course as and when the service was provided coupled with the fact that unless the service was provided the rate at which the service tax was to be paid would not be known, it is not possible difficult to sustain the order with regard to confirmation of the impugned interest. - Following decision of M/s Bhayana Builders (P) Ltd. vs. CST, Delhi [2013 (9) TMI 294 - CESTAT NEW DELHI (LB)] - Decided in favour of assessee.
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