Service tax rate applies on the date of service provision, not on receipt of payment or chargeability date.

Service tax was held to be chargeable at the rate prevailing on the date of provision of the taxable service, not on the date of receipt of payment or the date the tax became chargeable. The Tribunal followed its earlier ruling in the same assessee's case and found no infirmity in the Commissioner (Appeals)' order. The Revenue's challenge therefore failed.

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Issues: Whether the rate of service tax is to be applied on the date of rendering the taxable service or on the date when the tax becomes chargeable on receipt of payment.

Analysis: The Tribunal noted that the question had already been settled in the respondent's own case by holding that the applicable rate is the rate prevailing on the date of providing the taxable service. Following that earlier decision, no infirmity was found in the order of the Commissioner (Appeals).

Conclusion: The rate of service tax is applicable on the date of provision of the taxable service, not on the date of receipt of payment or chargeability. The Revenue's appeal failed.

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