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2024 (2) TMI 500 - AT - Service TaxDemand of differential duty - change/increase in the tax rate of Service Tax from 5% to 8% - point of Taxation Rules, 2012 - services rendered by the Appellant prior to 14/5/2003 - time limitation - HELD THAT:- The very issue was before the Hon’ble Delhi High Court in the case of CST Vs. Consulting Engineering Services [2013 (1) TMI 434 - DELHI HIGH COURT], wherein, the Hon’ble High Court has held Since the taxable event in the present case took place prior to 14-5-2003, the rate of tax applicable prior to that date would be the one that would apply. In the present case, the rate of 5% would be applicable and not the rate of 8% - the demand set aside on merits. Time Limitation - HELD THAT:- There are force in the Appellant’s submission that there was no cause for the Revenue to issue the Show Cause Notice in 2008, for the services provided by the Appellant prior to 30/05/2003, wherein the invoices amounts were realized latest by August 2004. At that particular point of time, in the absence of any specific Rule coming into play, it was left to the interpretation of the Appellant and the Revenue. In such a case, the Department cannot fasten the suppression clause on the Appellant. Therefore, the confirmed demand is liable to be set aside even on account of limitation also. The Appeal is allowed both on merits and on account of time bar.
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