https://www.taxtmi.com/caselaws?id=30422 The Appellate Tribunal CESTAT, Bangalore ruled in favor of the appellants, engaged in hire purchase services, in a case challenging the applicability of the revised Service Tax rate on agreements entered before and after a rate increase. The Tribunal held that the tax rate applicable to hire purchase contracts is the rate prevailing at the time of contract entry, not at subsequent payment dates, rejecting the department's argument for applying the higher rate based on continuous service provision post-rate increase. Consequently, the Tribunal allowed the appeal, clarifying that for agreements entered before the rate increase, the higher rate would not apply. en-us Thu, 08 May 2008 00:00:00 +0530 Sat, 03 May 2014 14:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=30422 The Appellate Tribunal CESTAT, Bangalore ruled in favor of the appellants, engaged in hire purchase services, in a case challenging the applicability of the revised Service Tax rate on agreements entered before and after a rate increase. The Tribunal held that the tax rate applicable to hire purchase contracts is the rate prevailing at the time of contract entry, not at subsequent payment dates, rejecting the department's argument for applying the higher rate based on continuous service provision post-rate increase. Consequently, the Tribunal allowed the appeal, clarifying that for agreements entered before the rate increase, the higher rate would not apply. Case-Laws Service Tax Thu, 08 May 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=30422