Appellate Tribunal upholds ruling on service tax timing, dismisses Revenue's appeal

The Appellate Tribunal CESTAT MUMBAI dismissed the Revenue's appeal against the Commissioner's order dropping a service tax demand of Rs.5,50,762. The Tribunal ruled that service tax is imposed when the service is rendered, not when payment is received, citing a precedent set by the High Court.

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The Appellate Tribunal CESTAT MUMBAI dismissed the appeal filed by Revenue against the Commissioner's order dropping a demand of Rs.5,50,762/- for service tax. The Tribunal held that service tax is leviable based on when the service is provided, not when consideration amounts are received. The decision was based on a previous ruling by the Hon'ble High Court.

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