Service tax pre-deposit on pre-18-04-2006 services was not required where liability commenced later and prior deposit was made.

Pre-deposit for service tax on services performed before 18-04-2006 was not required where the demand related to services received abroad, because the tax liability was stated to commence only from that date. The text applies the settled principle that service tax is a destination-based consumption tax and distinguishes between property-based and performance-based services. As the services were performed before the relevant date, tax was not treated as payable merely because consideration was received later, and the amount attributable to the taxable period had already been deposited. No further pre-deposit was directed during pendency of the appeal.

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Issues: Whether pre-deposit was required in respect of service tax demand relating to services performed before 18-04-2006, when the tax liability for services received abroad was stated to commence only from that date.

Analysis: The order relied on the settled position that service tax is a destination-based consumption tax and that services may fall into property-based and performance-based categories. Since the services in question were performed before 18-04-2006, tax was not considered payable merely because consideration was received later. The appellant had already deposited the amount attributable to the taxable period.

Outcome: No further pre-deposit was directed during pendency of the appeal.

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