2023 (9) TMI 237 - CESTAT CHENNAI

Enhancement of rate of Service Tax - works contract service for the period ending in March 2008 - Department was of the view that the assessee having received the amount after 01.03.2008, was liable to pay Service Tax at the enhanced rate of 4.12% - applicability of Circular issued by the Board in F. No. 345/6/2007-TRU dated 28.04.2008 - HELD THAT:- The Hon’ble High Court of Delhi in the case of VISTAR CONSTRUCTION (P) LTD/PIYARE LAL HARI SINGH BUILDERS PVT LTD VERSUS UNION OF INDIA AND ORS [2013 (2) TMI 52 - DELHI HIGH COURT] has considered the very same Circular and on the issue as to whether differential amount of Service Tax at the enhanced rate is applicable when services have been completed prior to 01.03.2008. The Hon’ble High Court observed that as per the decision of the Hon’ble Supreme Court in the case of ASSOCIATION OF LEASING & FINANCIAL SERVICE COMPANIES VERSUS UNION OF INDIA AND OTHERS [2010 (10) TMI 4 - SUPREME COURT], the demand cannot sustain.

The Commissioner (Appeals) has relied on the decision in the case of Association of Leasing and Financial Service Companies (supra) to hold that the demand at the enhanced rate cannot sustain - the view taken by the Commissioner (Appeals) agreed upon - the appeal filed by the Department is without merits.

Appeal dismissed.