2013 (12) TMI 75 - AT - Service Tax

CESTAT Chennai: Waiver of pre-deposit during appeal based on date of service, not billing.

The Appellate Tribunal CESTAT Chennai ruled in favor of the appellant, waiving the pre-deposit of tax amount during the appeal. The decision was based on ... Demand - Rate of Tax - Held that:- when the service was provided, the rate of tax applicable at that relevant time was lower and when the amount for the service was received, the rate of tax was higher and the department has demanded the tax at the higher rate - substantive provisions of the Act would indicate the relevant date for payment of service tax is date of entry and not date of billing - Following decision of CCE & C v. Reliance Industries Ltd. [2009 (7) TMI 717 - GUJARAT HIGH COURT], prima facie case is in favor of assessee - stay granted. The Appellate Tribunal CESTAT Chennai ruled in favor of the appellant, waiving the pre-deposit of tax amount during the appeal. The decision was based on the relevant date for payment of service tax being the date of entry, not the date of billing, as per the Hon'ble Gujarat High Court's decision in the case of CCE & C v. Reliance Industries Ltd.